Quote:
Originally Posted by jyl
I think the current US govt is overplaying its hand. They think that because the USD is the dominant global reserve currency and almost every major company/govt needs access to the US banking system, they can arbitrarily and unilaterally dictate terms to anyone.
Certainty the US has immense power due to the central role of its currency/banks. In the short term we can bully almost anyone. But if we are perceived by others as abusing that power too much, others will eventually find a way to side-step the USD/US banks if they have the power. The Chinese may have the power, they see breaking free from dependence on USD/US banks as a matter of national survival, and they are accumulating allies as fast as we are alienating ours.
When and if the USD loses its reserve status and international transactions can bypass the reach of US banking regulators, we will suffer pain vastly greater than whatever dubious benefits we think we're getting today.
Our govt thinks transactionally and in months/years. They need to think strategically and in decades.
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I think you just paraphrased what I had just said? U did, u did!!!
The US has been doing it for decades.
I imagine that before 08 the Chinese admired the US with it's abundant prosperity and wanted some of our magic...business acumen (how do they do it?).....to be so rich and live so well ...After 08 they were mortified that they had been conned hook line and sinker...(holding a cool 1.8T in USD"s and Treasuries). They suddenly found out that America appeared to be so prosperous because it is living on CREDIT. Since that date the Chinese have been doing everything they can in a quiet and methodological fashion to get away from USD hegemony, as they can clearly see that US fiscal and monetary policy is leading the US to the abyss.
And U boyz think T is making America Great Again...not with a Trillion in new debt he isn't.