Russia! Russia!! Russia!!!

[Fife]

We were somewhere around Barstow on the edge of the desert when the drugs began to take hold.

:goteam: :drunk:

[Smitty-48]

The debt has nothing to do with the reserve currency, if I buy a bond, I'm not spending that money, I'm parking it, the reserve currency is not related to buying bonds, the reserve currency is a function of spending, you don't buy more bonds to become the reserve currency, you buy more products and services, and not in America, but around the world.

You spend so much money around the world, your currency becomes dominant by default. It's not a political decision, it just happens as you spend, spend. spend, on imported goods and services.

[SuburbanFarmer]

The debt has nothing to do with the reserve currency, if I buy a bond, I'm not spending that money, I'm parking it, the reserve currency is not related to buying bonds, the reserve currency is a function of spending, you don't buy more bonds to become the reserve currency, you buy more products and services, and not in America, but around the world.

You spend so much money around the world, your currency becomes dominant by default. It's not a political decision, it just happens as you spend, spend. spend, on imported goods and services.

Right. Now what happens when the biggest buyer of our bonds stops doing so?

Actually, the 2 biggest - Fed and China?

[Smitty-48]

Doesn't effect the reserve currency, neither the Fed nor China is buying up 25% of the worlds goods and services, so it would change nothing in terms of the reserve currency.

If the Fed and China dump more dollars into the system, that would simply further entrench the dollar as the reserve currency, there would just be more dollars, not less.

[SuburbanFarmer]

Doesn't effect the reserve currency, neither the Fed nor China is buying up 25% of the worlds goods and services, so it would change nothing in terms of the reserve currency.

If the Fed and China dump more dollars into the system, that would simply further entrench the dollar as the reserve currency.

It would tank the value of the dollar, which defeats the entire purpose of anyone holding it as a reserve currency. Right now, most of the 4 Quadrillion is 'parked' as you say, in hypothetical money. When it hits the market, we get inflation. Think Zimbabwe, Weimar, etc.

More importantly in the short term, how do you suppose we keep up our ludicrous spending, if nobody's buying bonds? Just print more paper? Add a zero to a bank account?

[Smitty-48]

The value of the dollar has nothing to do with the reserve currency, again, you're conflating two separate issues, flooding the system with more dollars, regardless of their value, would simply further entrench the dollar as the reserve currency by increasing the number of dollars in the markets, mo dollars is mo dollars, that doesn't favour another currency, quite the opposite.

There are stronger currencies than the dollar, the dollar is not the most valuable currency, but that's neither here not there vis a vis the reverve currency.

The Kuwaiti dinar is worth more than the dollar, significantly more, but that doesn't make them a viable alternative to the dollar.

[Smitty-48]

If you want to dethrone the reserve currency; buy American, don't import, only spend your money in the USA on American made products and services, that would be the only way to do it. If Americans only exported and didn't import, then the Europeans would likely start to take over, all Americans would have to be on board, you'd all have to do it at once, but if you did, then the Euro would be the most likely candidate to dethrone the Dollar.

It's not going to be China, they don't spend enough, they export way more than they import, so it would be Europe next up in the que.

[SuburbanFarmer]

The value of the dollar has nothing to do with the reserve currency, again, you're conflating two separate issues, flooding the system with more dollars, regardless of their value, would simply further entrench the dollar as the reserve currency by increasing the number of dollars in the markets, mo dollars is mo dollars, that doesn't favour another currency, quite the opposite.

There are stronger currencies than the dollar, the dollar is not the most valuable currency, but that's neither here not there vis a vis the reverve currency.

The Kuwaiti dinar is worth more than the dollar, significantly more, but that doesn't make them a viable alternative to the dollar.

The only reason it is the reserve currency, is because it has perceived stability. That's it. Stability of value is what determines its worth as a "reserve" currency. That's why Gold is the ultimate "reserve".

If you take that away, and hyper-inflate it, they might as well be Zimbabwe bucks.

[SuburbanFarmer]

If you want to dethrone the reserve currency; buy American, don't import, only spend your money in the USA on American made products and services, that would be the only way to do it. If Americans only exported and didn't import, then the Europeans would likely start to take over, all Americans would have to be on board, you'd all have to do it at once, but if you did, then the Euro would be the most likely candidate to dethrone the Dollar.

It's not going to be China, they don't spend enough, they export way more than they import, so it would be Europe next up in the que.

No, it won't be Chinese Yuan. It will be gold. And it will stay gold, until another superpower arises to take the 'stability throne'.

[Smitty-48]

The value of the dollar has nothing to do with the reserve currency, again, you're conflating two separate issues, flooding the system with more dollars, regardless of their value, would simply further entrench the dollar as the reserve currency by increasing the number of dollars in the markets, mo dollars is mo dollars, that doesn't favour another currency, quite the opposite.

There are stronger currencies than the dollar, the dollar is not the most valuable currency, but that's neither here not there vis a vis the reverve currency.

The Kuwaiti dinar is worth more than the dollar, significantly more, but that doesn't make them a viable alternative to the dollar.

The only reason it is the reserve currency, is because it has perceived stability. That's it. Stability of value is what determines its worth as a "reserve" currency. That's why Gold is the ultimate "reserve".
.

No, again, you're completely wrong about that, you don't know what you're talking about, you have this narrative you want to propagate, about the reserve currency being related to perception and/or some sort of political choice, but you're simply incorrect, it's a function of exponentially more importing than exporting, on an exponential scale, nothing more nothing less, you're narrative is pure balderdash.