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72 sats \ 4 replies \ @didiplaywell 22 Oct \ parent \ on: What Will the Next Gold Bust Look Like? econ
I really don't think so. The US as been in this position countless times. Over and over again, the rest of the world has performed so, so much worse, that the deficiencies of the US dollar are top performance anywhere else. Perhaps the US government is well aware of this and likes to play this cycles at the expense of the greater stupidity of the rest. Can't really argue against that, not only it's well deserved, but it's a fair cost to pay for the favor of having the US lessening the damage. Most the US will get, as always, is a recession. Then the next cycle will start all over, for has long as the rest of the world remains as stupid.
The US dollar enjoys the position of being "the cream of the crap", in the sense that even if people are losing trust in the dollar, they're probably losing trust in other currencies more.
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The progression here will likely be slower because of that but we are now in the fiscal death spiral.
They can't afford to service the debt without printing more money. That means the inflation target is no longer relevant, which we're seeing now as they cut rates while CPI > 2%.
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Oh by no means I mean "you shouldn't worry at all". Do worry in all seriousness and do voice your concern, so that more voices join you. I just wanted to clarify that there's an abyss between your worst case scenario and what we have lived in Argentina. But, the only way to keep standards high is to defend your line, no matter how far ahead.
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Exactly. You can see that everywhere. I can confirm that for the entirety of latin america.
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