Russia! Russia!! Russia!!!

[Smitty-48]

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'.

It's not going to be gold neither, gold is not liquid enough, you could peg a currency to gold, but gold itself would not be the reserve currency, it wasn't the reserve currency even when there was a gold standard, the reserve currency, under the gold standard, was British Sterling, which then handed off to the dollar as America began to outspend the British Empire.

Under the gold standard, GOLD is the reserve. That's why it's a gold standard.

British Sterling was pegged to silver, which is why it was called STERLING. SILVER was the reserve.

Gold standard and reserve currency are not the same thing, gold was not liquid enough, so they pegged currencies to gold, but those currencies were the reserve, not based on choice, based on spending on importation, British Sterling flooded the markets when the Brtiish were the worlds largest net importer, to feed their industrial revolution, the dollar supplanted Sterling as the Americans began to import more than the entire British Empire.

Again, you don't know what you're talking about, neither in terms of the gold standard, nor the reserve currency.

Sterling was the reserve currency, even when there was a gold standard, because Sterling was flooding the markets by importation. The British had gold reserves, but they didn't pay in gold, because they didn't have to. The British Empire was so expansive and voracious, you had to take their Sterling, by default.

[SuburbanFarmer]

It's not going to be gold neither, gold is not liquid enough, you could peg a currency to gold, but gold itself would not be the reserve currency, it wasn't the reserve currency even when there was a gold standard, the reserve currency, under the gold standard, was British Sterling, which then handed off to the dollar as America began to outspend the British Empire.

Under the gold standard, GOLD is the reserve. That's why it's a gold standard.

British Sterling was pegged to silver, which is why it was called STERLING. SILVER was the reserve.

Gold standard and reserve currency are not the same thing, gold was not liquid enough, so they pegged currencies to gold, but those currencies were the reserve, not based on choice, based on spending on importation, British Sterling flooded the markets when the Brtiish were the worlds largest net importer, to feed their industrial revolution, the dollar supplanted Sterling as the Americans began to import more than the entire British Empire.

You clearly don’t understand how trade works. At all.

What’s stopping India from importing whatever they want? Are the other countries simply too stupid to buy enough stuff?

[Smitty-48]

Under the gold standard, GOLD is the reserve. That's why it's a gold standard.

British Sterling was pegged to silver, which is why it was called STERLING. SILVER was the reserve.

Gold standard and reserve currency are not the same thing, gold was not liquid enough, so they pegged currencies to gold, but those currencies were the reserve, not based on choice, based on spending on importation, British Sterling flooded the markets when the Brtiish were the worlds largest net importer, to feed their industrial revolution, the dollar supplanted Sterling as the Americans began to import more than the entire British Empire.

You clearly don’t understand how trade works. At all.

What’s stopping India from importing whatever they want? Are the other countries simply too stupid to buy enough stuff?

Countries like India are net exporters, China, Japan too, those countries are not rich enough, so they sell rather than buy, America is so rich, the Chinese, Japanese and Indians all end up flooded with dollars, by selling to America. Buying up 25% of the worlds exports, is a critical mass, which no other country is even close to achieving.

[SuburbanFarmer]

Gold standard and reserve currency are not the same thing, gold was not liquid enough, so they pegged currencies to gold, but those currencies were the reserve, not based on choice, based on spending on importation, British Sterling flooded the markets when the Brtiish were the worlds largest net importer, to feed their industrial revolution, the dollar supplanted Sterling as the Americans began to import more than the entire British Empire.

You clearly don’t understand how trade works. At all.

What’s stopping India from importing whatever they want? Are the other countries simply too stupid to buy enough stuff?

Countries like India are net exporters, China, Japan too, those countries are not rich, so they sell rather than buy, America is so rich, the Chinese, Japanese and Indians all end up flooded with dollars, by selling to America. Buying up 25% of the worlds exports, is a critical mass, which no other country is even close to achieving.

And why are we rich?

[Smitty-48]

And like the British Empire before, America is so dominant in terms of importation, that America does not have to peg to gold, the world takes American "Sterling", by default, because there's nobody else to sell to, on that scale.

[SuburbanFarmer]

And like the British Empire before, America is so dominant in terms of importation, that America does not have to peg to gold, the world takes American "Sterling", by default, because there's nobody else to sell to, on that scale.

Because nobody else wants that much stuff?

[Smitty-48]

You clearly don’t understand how trade works. At all.

What’s stopping India from importing whatever they want? Are the other countries simply too stupid to buy enough stuff?

Countries like India are net exporters, China, Japan too, those countries are not rich, so they sell rather than buy, America is so rich, the Chinese, Japanese and Indians all end up flooded with dollars, by selling to America. Buying up 25% of the worlds exports, is a critical mass, which no other country is even close to achieving.

And why are we rich?

You consume on an exponential scale dwarfing all others, rather than sit on your wealth, as the Chinese and Japanese do, you spend, spend, spend, your consumption is the source of your wealth, because in actual fact, when it comes to wealth, velocity is more important than amount, which is why gold cannot supplant the dollar; not liquid enough.

[SuburbanFarmer]

Countries like India are net exporters, China, Japan too, those countries are not rich, so they sell rather than buy, America is so rich, the Chinese, Japanese and Indians all end up flooded with dollars, by selling to America. Buying up 25% of the worlds exports, is a critical mass, which no other country is even close to achieving.

And why are we rich?

You consume on an exponential scale dwarfing all others, rather than sit on your wealth, as the Chinese and Japanese do, you spend, spend, spend, your consumption is the source of your wealth, because in actual fact, when it comes to wealth, velocity is more important than amount, which is why gold cannot supplant the dollar; not liquid enough.

Because we're rich
because we have the reserve currency
because we're rich
because we have the reserve currency
because we're rich
because we have the reserve currency
because we're rich
because we have the reserve currency
because we're rich
because we have the reserve currency
because we're rich

See the problem?

[Smitty-48]

It's not a problem unless you stop consuming, so long as you keep consuming on the scale you are, there is no alternative to the dollar, if the Fed released all those treasury dollars into the system, that wouldn't result in less spending, it would just result in mo dollars, mo dollars flooding the system, more people holding the dollar by default, there's nowhere for them to dump the dollar, somebody has to take those dollars, so it doesn't result in less dollars, and so it doesn't threaten the reserve currency it merely retrenches it.

[SuburbanFarmer]

It's not a problem unless you stop consuming, so long as you keep consuming on the scale you are, there is no alternative to the dollar, if the Fed released all those treasury dollars into the system, that wouldn't result in less spending, it would just result in mo dollars, mo dollars flooding the system, more people holding the dollar by default, there's nowhere for them to dump the dollar, somebody has to take those dollars, so it doesn't result in less dollars, and so it doesn't threaten the reserve currency it merely retrenches it.

So, in Smittynomics, he who prints the most money wins.

Makes you feel bad for all those poor saps who didn't do it fast enough, huh.