pull down to refresh
11 sats \ 14 replies \ @stack_harder OP 30 Dec 2024 \ parent \ on: The dollar as a reserve currency and the Cantillon effect econ
i mean for sure, we'd all have been better getting paid in oz of gold (before btc) and also for sure i feel like purchasing power is down, but it seems like the US salaries are blasting way ahead.
like 100k used to be a good benchmark just a decade ago, now people are like oh i have 100k and somehow it's not providing the purchasing power
The United States, by exporting its debt and its inflation, enjoys a privilege that no other country enjoys, and this is directly reflected in the purchasing power of its citizens, who continue to earn more money (only in face numbers) because behind it the dollar also deteriorates and loses purchasing power, only not at the same rate as other fiat currencies.
and in the end it looks as if they earn more money every year, because year after year you earn more paper, but let's remember that these papers are losing purchasing power with the uncontrolled increase in the money supply, so in reality they are not earning more.
reply
i have to say, while compared to someone in the US i earn poverty-level wages, my general standard of living is pretty great. lower fiat wages do mean a reduced ability to stack as aggressively as i would like though unfortunately
reply
Believe me, I can understand that. Here I feel the same frustration of not being able to stack more real coins.
I lived in South America where the sale of gold and silver for investment is almost non-existent.
and where the salaries are like those left by someone in a bar in a first world city.
Here you earn less, but to a certain extent there is less control and more freedom.
Now we only have to move forward, step by step, firmly and without hesitation.
reply
the silver lining i suppose is that now people at least have the option to put what small amounts they can in btc for the future.
meanwhile, so many people with mega salaries and they;re not stacking a single sat, such wasted potential
reply
Totally, I have a friend who is currently making a good income with her job, and since we were at 25 or 30, which was when I started my DCA and began to expose myself to this bitcoin thing seriously. I gave her the voice and told her to take advantage of your purchasing power and make sure of some of this. And she did nothing, and I literally spent the entire year of 2024, telling her, friend, you have to buy something, watch this video, listen to this Podcast, study Fiat, we must conserve energy, and nothing. A year ago she went to Argentina and returned this year in November as well. And she came back complaining because she spent twice as much as budgeted for the trip. Her trip cost her twice as much in dollars as the previous year. That's it, the last time we talked was at the end of November when I told her to do the SATS calculation of your first trip (Bitcoin between 17k and 20k Nov-2023) and now calculate your second trip (Bitcoin 60k -70k NOV-24)... and see how much you spent on the first trip and how much you needed for the second and finally I told her
Don't believe me at all, go and check it out. Research, read, question.
But as far as I know, she still doesn't expose herself to bitcoin and says that her job consumes her a lot, that she doesn't have time to sit down and study. 🤷
reply
some people are beyond help, as the saying goes, when the student is ready, the teacher appears
reply
The silver lining is silver. Or not.
reply
sometimes if a sharp blade that slices normies and makes them say it's unfair that bitcoiners get in early lol
reply
Which countries import USA debt and inflation?
I don’t think inflation is exportable because it’s a central bank problem.
The exceptions are countries who use USD like Panama 🇵🇦 and El Salvador 🇸🇻
reply
Friend, the dollar is the world's reserve currency, therefore all countries demand dollars for their reserves, dollars and American treasury bonds.
and additionally, being the reference currency worldwide, all assets are mainly measured in dollars and are traded in dollars between countries. This in turn allows the American government to export debt (the dollar is debt, issued without any backing) which translates into exporting dollars to the whole world. This in turn causes the strong printing of money that they have brought in the last 50 years to not be noticed, to not be noticed within their territory, and to this add that the rest of the Fiat currencies are even more garbage, then everyone asks for and needs dollars, because it is presumed that it is the best money. and add to this that ordinary people 👥 don't know about good money or bad money in school they don't teach about it, only those where the country is involved in a crisis and the currency depreciates rapidly is that the average citizens see something called "good money and bad money" and end up getting rid of their bad money (local Fiat money) and get what they think is better money, that is, dollars (but remember that the dollar is another bad money) But people don't know this, so they keep demanding dollars from every corner of the planet. The government doesn't care that its citizens are poorer, it even suits them. so the government prints tons of it, banks create money out of thin air in bulk through new loans, and in this way they export their currency to everyone while eroding it along the way and while the average citizen has no idea what is happening.
reply
to be fair, until btc , the options were gold and dollars for most countries that didn't have access to the US financial instruments etc. course, all things considered, dollars were most likely the easist option. now it's just the new generation that will have to adopt bitcoin as the superior money
reply
to be fair, until btc , the options were gold and dollars for most countries that didn't have access to the US financial instruments etc.
Totally true, before Bitcoin the common citizen could only access the dollar. Because gold is very difficult to deal with and not in all cities in the world, you can go and buy some investment currency (Chinese panda, American eagle, Australian kangaroo, English Britannia) to name a few.
All citizens lived deceived, between the bad money of our countries of residence and the other bad money, disguised as "good money", that is, dollars.
Now we have BTC and we can be truly free. And the work of the new generations is to wake up and free themselves from the fiduciary system by adopting
reply
Amigo, Milei plans to dollarize in Argentina. This is a step in the right direction because the dollar is more stable than the peso, though Milei has done a great job of curbing and controlling inflation since he took office in Dec 2023.
It's easy to blame USA for all the world's financial problems but that is also lazy.
reply
Here I do not agree with you, I cannot agree
- Milei is not going to dollarize Argentina, that is, replace the Argentine Peso with the Dollar. What Milei is allowing is the free trade of currencies, in order to break the existing exchange system that handles two different prices.
- It is not about whether the dollar is more stable than the peso or not. Milei stopped inflation, turning off the machine and allowing the peso to recover strength. Milei wants to recover the currency of the country, not adopt that of another.
- Nobody here is saying that the US is to blame for the world's problems, at no time has such a position been said or hinted at. It was simply said as it is part of the functioning of the dollar in the world.
reply