soula avramidis wrote: > I may just add assume that the dollar is the fiat money for much of the > world and assume that the US can issue currency for much the world against > pure military might and oil control and try to remeasure sirgnorage in terms > of borrowing from the rest world with or against their will if there need be > the case. > now set the present value of the deficits against these gains and see what > happens.
I think it's right to assume that the "dollar is the fiat money for much of the world" based on its military might. But manufacturing, more broadly economic, and financial might also help shore up the dollar as the world's fiat money. It's also true that this situation helps the US get better credit terms from the rest of the world (and the advantage of being a "safe haven" for capital funds). With all four of these being pretty shaky right now, it's possible that the world might have to switch to some combination of US$ and euros or something like that. And the credit/safe haven advantage of the US would go away. I don't know how the US could force the rest of the world to lend to it "against their will." The US military seems overstretched. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
