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535 sats \ 15 replies \ @SwearyDoctor 12 Jul \ on: Debt spiral is coming bitcoin
this is only half the story. What people fail to understand is that hyperinflation, where it happened, was never a result of internal policy failures or just of money printing; it was always a result of having debt and other liabilities in another currency they CAN'T print. This was German hyperinflation, which had reparations debt in gold mark and physical goods. this is Zimbabwe, Venezuela, Argentina. The currency they CAN print doesn't serve to buy goods on the world market or pay their external debts.
The US, however, can do that - UNTIL NOW - because the currency the US prints just drains away in the coffers of the world, in world reserves for international trade, as countries buy up dollars to circulate them, often among themselves, to pay for all sorts of goods and resources. (this is the US' free lunch, it produces dollars for nothing and gets all the world's good back; you could also call it a robbery, as it does it by threat of physical force).
The problem isn't the debt service, or the money printing, by itself. It's those things, combined with the fact that the qworld has had enough of being robbed by 850 worldwide bases, jet fighters and aircraft carriers, through their buying of US rtreasuries and denominating goods in dollars. That's the part that will make the currency hyperinflate: the debt and printing PLUS the fact that this printed paper can no longer be dumped on the world for free goods.
I totally agree with you and you couldn't explain it in a better way, what will deal the final blow will be the loss of confidence and that the bond auctions turn out worse every day since without demand for bonds the currency is destined to collapse since They would have to buy them themselves.
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Federal Reserve buys bonds when there are no other buyers
Terrible situation
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yes, we will be closely observing the situation.
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Thanks for clarifying. I also think that the US debt is over exaggerated. The dollar easily dissolves in every corner of the world. It's not limited to boundries. So, no chance of hyperinflation.
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No chance of hyperinflation -as long as- the dollar easily dissolves in every corner of the world. This is my point: this won't last forever.
Reserve currencies have cycles, and they eventually fail; and thatusually goes along with a rebellion against the hyperexploitation that goes along with being forced into a reserve currency which, as I said, provides the issuer with a free lunch - but that's only true IF that reserve currency is a fiat currency.
That's obviously different with gold, or bitcoin, which is important to keep in mind for the future.
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USA debt to GDP ratio has never been this high
Including World War Two
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meanwhile, look at Russia's debt to reserves
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Would it be due to massive purchases of gold? I think another thing that is adding fuel to the fire is that the United States confiscated a lot of money from the Russians and now the other countries that have bonds see how unfair the system is if you do not agree with the owners.
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It will not last forever as well explained, I think that starting in 2020 humanity peaked and now it is time to pay the bills with emissions.
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In reality, hyperinflation is certain, the question is when, the dollar will continue to be the currency used everywhere but every day it will buy fewer goods and services.
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It's not happening. In my country I'm buying more with USD over the time. Dollar has always increased against my country's currency. Even in the past 10 years, it increased as much as 40%
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That won't last forever, believe me, in Venezuela for example that happened until the national currency imploded, now the dollar is used as currency and every day it buys less ;)
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Value is relative
I heard that 60 percent of transactions in Latin America are settled in dollars
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In short, the rise of the dollar in Latin America is nothing more than a collapse of national currencies and not a revaluation of the dollar itself.
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Yes, there lies the problem, because the dollar did not lose value because it was used to take refuge from national currencies, as only the dollar is used, it will lose its value vs. goods and services, since those who sell services and goods will charge in dollars and will be affected by the high prices of energy, assets and food.
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