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0 sats \ 5 replies \ @Bell_curve 30 Dec 2024 \ parent \ on: The dollar as a reserve currency and the Cantillon effect econ
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 🇸🇻
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.
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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
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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
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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.
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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.
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