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0 sats \ 11 replies \ @BitcoinAbhi 12 Jul \ parent \ on: Debt spiral is coming bitcoin
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.
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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