The death of the dollar

[TheKmaGuy]

Well written post OP.
Just wanted to make a comment.
I agree with your post and the comments here, how the world is bound for another finacial crisis, the ammount of debt in the world is out of hand, and people think they can just keep borrowing forever.
People also expect growth to continue forver, people need to get use to stagnating economies, possible even small declines in growth, otherwise we will just create bubbles after bubbles. This is seen with housing, people think housing will go up forever, til it doesn't.....
Im also an Australian and am worried the next collapse will be worse then the last.
We did well in 2008, but, the measures the government took to secure the banks are still in place, and with such low interstest rates, we don't have the capabilities, both in fiscal or monetary policy to survive the next crash.

I still think the USD will continue to be the powerhouse currency. Everything is backed by the USD, in a case as you describe where the USD becomes worthless, you would see a complete breakdown in almost every countries financial system, it would be near apocalyptic, being detremental to every single country in the world.
And because of this US policy makers will find ways / negiotiate ways to deal with debt, rather then printing endless currency and causing hyperinflation.

[Allura]

Well written post OP.
Just wanted to make a comment.
I agree with your post and the comments here, how the world is bound for another finacial crisis, the ammount of debt in the world is out of hand, and people think they can just keep borrowing forever.
People also expect growth to continue forver, people need to get use to stagnating economies, possible even small declines in growth, otherwise we will just create bubbles after bubbles. This is seen with housing, people think housing will go up forever, til it doesn't.....
Im also an Australian and am worried the next collapse will be worse then the last.
We did well in 2008, but, the measures the government took to secure the banks are still in place, and with such low interstest rates, we don't have the capabilities, both in fiscal or monetary policy to survive the next crash.

I still think the USD will continue to be the powerhouse currency. Everything is backed by the USD, in a case as you describe where the USD becomes worthless, you would see a complete breakdown in almost every countries financial system, it would be near apocalyptic, being detremental to every single country in the world.
And because of this US policy makers will find ways / negiotiate ways to deal with debt, rather then printing endless currency and causing hyperinflation.

How will America pay their debt? At a certain point america would have so much debt, that the interest payments alone would be too much. The only options america still has to remain the "main" currency would be if they did something logical but why would that happen?
They can default, but if they do that, the interest rate on the loan goes up even more because its more risky to invest in America. The only options left are war (which would most certainly end the world), killing their own (to reduce population, hence reduce spending), cutting down on luxury expenses (LOL, while the best option here, this will ever happen, all politicians want is to get elected) or printing so much money that USD becomes worthless (which would also probably start a war).

USA doesn't have many options left. Another option could be to sell a state. They could sell a state to another investor

[TheKmaGuy]

How will America pay their debt? At a certain point america would have so much debt, that the interest payments alone would be too much. The only options america still has to remain the "main" currency would be if they did something logical but why would that happen?
They can default, but if they do that, the interest rate on the loan goes up even more because its more risky to invest in America. The only options left are war (which would most certainly end the world), killing their own (to reduce population, hence reduce spending), cutting down on luxury expenses (LOL, while the best option here, this will ever happen, all politicians want is to get elected) or printing so much money that USD becomes worthless (which would also probably start a war).

USA doesn't have many options left. Another option could be to sell a state. They could sell a state to another investor

Realistically you would probably see them cutting down on spending and raise taxes. They are the government and if needed they have the power to raise the revenue needed. Not saying it won't cause problems, your completly right on this, but i feel as if the US could recover, and if they didn't the demise of the dollar would be something huge.....

[Allura]

Realistically you would probably see them cutting down on spending and raise taxes. They are the government and if needed they have the power to raise the revenue needed. Not saying it won't cause problems, your completly right on this, but i feel as if the US could recover, and if they didn't the demise of the dollar would be something huge.....

if they cut expenses, that party will automatically lose the next election, so why would they ever cut expenses? Therefore, the option they will pick is war and convince themselves no country will use nuclear weapons (but of course, one country will). It only takes one country to fire a nuclear weapon to end the world within a few days. Politicians don't actually care about citizens (thats the truth). All they care about is who holds the most power and how can I monetize their power (by taking money from private companies to pass laws). If governments actually cared, they would have never let the debt get this high and never let companies fund them.

Democracy in USA, AUS, CA etc is an illusion of dictatorship. Give the society a little power (by voting), and then, after that 1 day of freedom of voting, we the government control the rest.

[Sp1nalcord]

People seem to make things much worse than they actually are.

First of all, I agree the US has debt problem be it Student debt, Government debt or corporate debt but it still won't mean much because USD is the global currency and the demand of the currency is high. If these debt problems existed in emerging countries like India or Indonesia and such then that would be quite bad because if they default then boom your currency will be worthless and if you can't handle economy well you will be in a situation of hyperinflation. Argentina is a great example of this.

Another point that many people seem to think that US will have a depression and such is due to the fact of trade deficits. Trade deficits are the reason that Trump is pushing for Trade wars. US is a global economy and consumes a lot while it doesn't has all the resources it need for the consumption so it needs to import from other countries. Trade deficits are never bad for an economy if there is asset creation in the economy and US is doing quite well. I don't live there but from stats it at least looks like it's growing economically quite well. If anyone is interested in deficits and such then watch this video -

Student debt is a major issue right now. There are worthless degrees that students are paying for and in the end they get fucked because they can't pay back in future. 90% of student loans are financed by US govt. and fun fact is that most of the loans cannot be discharged even if you declare bankruptcy. Students don't research their degrees and they end up getting a shit job. Who the fuck pays $100k for a degree in Social work? You want education prices to go down? Make all the government schools and colleges free of cost. Private uni's will be forced to lower down the cost otherwise good luck paying all that inflated debt.

Corporate debt is a major issue and govt. is doing nothing for it. This is the mother of all the debts and I believe will be the cause of Great Depression in the future. US has the legal authority to print dollars but economics says that if you just keep printing and ignore all your problems you are gonna get your country fucked up. If US fails the whole world fails and mind you that with all the emerging countries on the rise I doubt US can keep the throne of world currency if it fails again. Even when economy is doing well , govt is still having a deficit increase of 17%. Trump will leave the office with a lot of debt and history has shown that republicans increase debt while democrats decrease debt.

Russia and China could be the new superpowers but I highly doubt about Russia. It's still far away to even compete with US and China. India and China would most likely be the new superpowers by the year 2050 while UK and US will have a downfall. Russia has a lot of resources and it could develop a lot but unless they combat their drugs issue and take aggresive measures to increase production other than oil I doubt they could be at the top. Arabian countries are also gonna fall as world is shifting from oil to better renewable sources and too bad the money within these countries won't be available forever.

We won't have any full fledged war in future. It will just be economic wars from now on.

[Allura]

People seem to make things much worse than they actually are.

First of all, I agree the US has debt problem be it Student debt, Government debt or corporate debt but it still won't mean much because USD is the global currency and the demand of the currency is high. If these debt problems existed in emerging countries like India or Indonesia and such then that would be quite bad because if they default then boom your currency will be worthless and if you can't handle economy well you will be in a situation of hyperinflation. Argentina is a great example of this.

Another point that many people seem to think that US will have a depression and such is due to the fact of trade deficits. Trade deficits are the reason that Trump is pushing for Trade wars. US is a global economy and consumes a lot while it doesn't has all the resources it need for the consumption so it needs to import from other countries. Trade deficits are never bad for an economy if there is asset creation in the economy and US is doing quite well. I don't live there but from stats it at least looks like it's growing economically quite well. If anyone is interested in deficits and such then watch this video -

Student debt is a major issue right now. There are worthless degrees that students are paying for and in the end they get fucked because they can't pay back in future. 90% of student loans are financed by US govt. and fun fact is that most of the loans cannot be discharged even if you declare bankruptcy. Students don't research their degrees and they end up getting a shit job. Who the fuck pays $100k for a degree in Social work? You want education prices to go down? Make all the government schools and colleges free of cost. Private uni's will be forced to lower down the cost otherwise good luck paying all that inflated debt.

Corporate debt is a major issue and govt. is doing nothing for it. This is the mother of all the debts and I believe will be the cause of Great Depression in the future. US has the legal authority to print dollars but economics says that if you just keep printing and ignore all your problems you are gonna get your country fucked up. If US fails the whole world fails and mind you that with all the emerging countries on the rise I doubt US can keep the throne of world currency if it fails again. Even when economy is doing well , govt is still having a deficit increase of 17%. Trump will leave the office with a lot of debt and history has shown that republicans increase debt while democrats decrease debt.

Russia and China could be the new superpowers but I highly doubt about Russia. It's still far away to even compete with US and China. India and China would most likely be the new superpowers by the year 2050 while UK and US will have a downfall. Russia has a lot of resources and it could develop a lot but unless they combat their drugs issue and take aggresive measures to increase production other than oil I doubt they could be at the top. Arabian countries are also gonna fall as world is shifting from oil to better renewable sources and too bad the money within these countries won't be available forever.

We won't have any full fledged war in future. It will just be economic wars from now on.

High demand of USD currency or not, all USD debt is in USD. All investors will demand their payment. What happens when all those investors come back to USA and say, where's my money? They are going to borrow more money? Increasing their debt again? Then what happens when those new people come in and say, where's my money the following year? They are going to borrow more money? It becomes a ponzi scheme in a way. Get the new investors money and pay the old ones. Then the debt becomes so high, that they have to borrow so much money. Then what? The US hasn't been in surplus for 8 years and the deficits are still so high.

Trade wars, while "good" to fix trade deficits, what is stopping other countries to retaliate. They can just as easily put a tariff on usa exports.

Russia or china will most likely be the new super powers. I agree with that.

[Sp1nalcord]

High demand of USD currency or not, all USD debt is in USD. All investors will demand their payment. What happens when all those investors come back to USA and say, where's my money? They are going to borrow more money? Increasing their debt again? Then what happens when those new people come in and say, where's my money the following year? They are going to borrow more money? It becomes a ponzi scheme in a way. Get the new investors money and pay the old ones. Then the debt becomes so high, that they have to borrow so much money. Then what? The US hasn't been in surplus for 8 years and the deficits are still so high.

Trade wars, while "good" to fix trade deficits, what is stopping other countries to retaliate. They can just as easily put a tariff on usa exports.

Russia or china will most likely be the new super powers. I agree with that.

What you just described is the problem of corporate debt. Have a read here - https://business.financialpos*****m/n...credit-bubbles

US will eventually fall due to debt and when it does USD will not be the global currency anymore. It won't be your normal recession then and whole world economy will collapse much worse than earlier times. Until then if any emerging country like China or existing developed countries should be able to replace USD as the global currency but I doubt any currency is suitable for that as of now.

As long as debt is being used for asset creation it's never bad. Don't judge an economy just by trade deficits. Venenzuela has a trade surplus but it's economy has collapsed. Trade deficits are never the problem , it's just that they are made to be the problem. Trade wars are never good and leads to downfall of all the countries involved. Even with high deficits US has shown no correlation with unemployment or growth which makes me think why we discuss this as if it's a major problem. Focus on other debts instead of induldging in stupid trade wars.

Some people will stil say that "It's too big to fail" but hey look what happened during the housing bubble. Blame will be on the immigrants and bailouts will be made but too bad US won't be economic leader after the next depression. An empire will fall and new empire will be made.

In the long run we are all dead. Just sit back and enjoy while you still can.

[LuffyF]

I call it the trump effect! #MAGA

[pubknip]

Do you really believe that Russia can be number 1? If this happens, then I am sure only in China

[TheRussianKid]

I don't mean to sound stupid and this is not for any political view or anything. If the United States debt gets so bad, can't they just like, invade a country or something and just steal whatever they have. I mean, no offense but like, the united states has the strongest military in the world.

[Dellzie]

I don't mean to sound stupid and this is not for any political view or anything. If the United States debt gets so bad, can't they just like, invade a country or something and just steal whatever they have. I mean, no offense but like, the united states has the strongest military in the world.

Yeah aside from this little thing called international law

[TheRussianKid]

I don't mean to sound stupid or anything but can't the United States like, change international law or just break it.
Whose going to stop them, I mean, the United States has the strongest military in the world. Whose going to stop them

*Not for any political view but realistically right?*

[DairisYT]

I don't mean to sound stupid or anything but can't the United States like, change international law or just break it.
Whose going to stop them, I mean, the United States has the strongest military in the world. Whose going to stop them

*Not for any political view but realistically right?*

Stop trolling, none can't be that stupid in 21st century to say something like that.

[Sp1nalcord]

I don't mean to sound stupid or anything but can't the United States like, change international law or just break it.
Whose going to stop them, I mean, the United States has the strongest military in the world. Whose going to stop them

*Not for any political view but realistically right?*

The military will do shit when the whole world will be destroyed by nukes. There will just be economic or biochemical wars from now on.