The dollar is backed by the "full faith and credit" of the US government. A government who, if I read correctly, will be at the point of it's debt being 200% the size of it's GDP before the end of next year. That is like someone making $100k a year and having $200k in credit card debt. But telling you to trust them with your cash since they're "good for it".
Not exactly. The US military helps fuel our economy because it is used to support business interests around the world, but that's not the reason the Dollar is the world reserve currency.
It's all part of the larger current discussion, that the BRICS are "talking" about making their own banking system with some form of gold backed currency (whether it be a new currency, or one of the BRICS own's currency).
I think the real test would be if/when BRICS effectively decouples from USD based pegging/valuation through this new "BRICS gold/whatever backed reserve". At that point there will be far more honest "competition" in the currency market, and the house of Saud will have to look at which currency offers them a more stable and profitable platform for selling their goods. I suspect the answer would be "well.... both then!" which is perfectly fine. They could sell to part of the world in petrodollars and part of the world if petrobrics or whatever. Who it wouldn't be perfectly fine for would be the US, as the USD would then lose one of it's big sticking points to being the global reserve currency of choice. Either that or the US Government would have to start taking steps to ensure the value and stability of the dollar, and woe be onto those who buy votes with "unlimited government spending" if that happens.
If I'm Russia or China or the Islamic world, my goal is to destroy the U.S., the E.U. and the "rules-based international order." Because it's a matter of survival. That's why they have all banded together against the tyranny of the corrupt elites of the West. And their new commodity-backed currency will kill the fiat power of the U.S. elites. Shoot it dead.
It will be just like when the British Pound Sterling faded. It was the default global reserve currency before the USD. Then as the British empire was fading (i.e. post WWI) they had this thing called Bretton Woods. Which was a big summit where the (at the time) gold backed USD effectively started phasing in as the default reserve currency. British pounds are still around, they just aren't the backbone of the global economy anymore. USD will follow the same path, and yes it will probably be something like a 10-20 year phase. Which sucks for me in particular as this introduces a ton of instability in the financial markets right as I will be hopefully heading into retirement.
On the bright side, there is always the outlier possibility that they implement a global CDBC backed by IMF SDRs or something like that. In which case I expect it would be rolled out and dominant on a much shorter timeframe. In that situation I'm sure you could comfortably be living in your pod eating bugs by retirement. Seems to me retirement life would be conducive to a good social credit score too as long as you stop posting here!
www.forbes.com
Retirement? Consuming resources and emitting carbon after you are no longer productive is illogical. Into the vat you go.
What Is Worldcoin? Here’s What To Know About The Eyeball-Scanning Crypto Project Launched By OpenAI’s Sam Altman
Altman said the project “feels especially important in the AI era.”
Remember when we were afraid of social credit systems and Chinese-style superapps?
Pepperidge Farms remembers.
If you think that the US version of WeChat that Elon is trying to build won't be 10x worse than our current banking system in regards to censorship, I have a game made in 1999 playable in a browser to sell you
I can barely even remember a time that attitude was prevalent on this board.
