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131 sats \ 2 replies \ @Undisciplined 6 Jan \ on: Dollar As Reserve Currency Share Loses Ground econ
I'm curious if Trump's "Use dollars or get tariffed!" threats will lead to a short-term tren reversal. I won't be surprised if it backfires and accelerates the trend, like the Russia sanctions.
Trump threatened, but it was China that sanctioned 10 American companies. Among the companies are General Dynamics, Boeing, Lockheed Martin and Raytheon, all in the defense, technology and aviation sectors.
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US exceptionalism is common among Libertarians who cannot accept that China with a strong central government role in the economy now dominates global trade.
There is no nation that can afford not to trade with China without losing significant economic advantage.
The USA cannot declare war on China because so many of the USAs top corporates are dependent upon China supply chains and declaration of war would result in their insolvency.
USA is dependent upon its USD hegemony and that hegemony is in decline because USA no longer dominates global trade.
China sets the commodity price and China sets the prices of manufactured goods.
USAs corrupt crony capitalism addicted to financialised leveraged monetary hegemony is losing to Chinas centrally planned free market hybrid mercantile strength.
Libertarians cannot see how state power projection is such a crucial factor in the wealth of nations.
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