Trade Wars and Tariffs

[EasternVol]

Not really and you know that.

Sounds like you are ok with Americans not having a future and getting $ 5 an hour.

I will give you another historical event if nothing was done, it is called the French Revolution or perhaps even the Great Depression which led to Fascism.

The best way to get the unemployed back to work is a major world war... that is what made Hitler popular.

You don't provide for your people, there will be violence. China was destroying the future of our younger generations. Action had to be taken, even if messy. Europe would be wise to follow our suit.

We were the most prolific IP thief in the world, sweetheart deals were common, and our working conditions tended toward exploitation.

 

[McDad]

Where would the US govt get it's money if foreign countries, banks and other entities quit borrowing US dollars and paying interest to the US banks (federal reserve) who lent it to them?

I didn't know those countries borrowed money to use as reserve currency. That's kind of surprising to me.

I don't understand the question about where the US would get its money, though. I assume we would do what we do now, print more money when it is needed.

 

[n_huffhines]

Not really and you know that.

Sounds like you are ok with Americans not having a future and getting $ 5 an hour.

I will give you another historical event if nothing was done, it is called the French Revolution or perhaps even the Great Depression which led to Fascism.

The best way to get the unemployed back to work is a major world war... that is what made Hitler popular.

You don't provide for your people, there will be violence. China was destroying the future of our younger generations. Action had to be taken, even if messy. Europe would be wise to follow our suit.

Yeah, kill millions of people and then take their jobs. This is Paul Krugman ****, and the right used to make fun of him.

 

[tvolsfan]

It's the only thing propping up the value of our dollar. If it wasn't the world’s reserve currency it would be worth little more than the cloth it's printed on.

You keep saying this. Sometimes I think you just like collapse porn.

We would be poorer and worse off, sure, but the dollar isn’t going to become worthless. That’s silly.

Way more realistic that the dollars share in global transactions declines and the Euro or Pound rises. Nobody trusts China and dollars would still be heavily used, even if not nearly as much.

 

[McDad]

Foreigners pay for the exported inflation.

That seems self evident. If our money inflates in value, countries using it as reserve currency experience inflation as well.

 

[hog88]

I didn't know those countries borrowed money to use as reserve currency. That's kind of surprising to me.

I don't understand the question about where the US would get its money, though. I assume we would do what we do now, print more money when it is needed.

What would it be worth if there was no demand for it?

 

[McDad]

Yes, they borrow it for the most part. Much of it is done through private banking backed by guarantees from the federal reserve.

The interest is paid to the Federal Reserve?

 

[hog88]

You keep saying this. Sometimes I think you just like collapse porn.

We would be poorer and worse off, sure, but the dollar isn’t going to become worthless. That’s silly.

In reality yeah it would be worthless. People would start to use barter and metal instead of the dollar, there is a well documented history of what happens when a currency gets devalued.

 

[volbound1700]

Yeah, kill millions of people and then take their jobs. This is Paul Krugman ****, and the right used to make fun of him.

That is why I am arguing against it.

If you are a 20-year old with no job, no future, what else do you have to do? Scary thought. We are seeing more and more idle males in various countries across the world. That is a recipe for major political change.

 

[LSU-SIU]

I didn't know those countries borrowed money to use as reserve currency. That's kind of surprising to me.

I don't understand the question about where the US would get its money, though. I assume we would do what we do now, print more money when it is needed.

Money creation is done by the public and private sector see Federal Reserve Act. The bounds put in place i.e. collateral was more or less relaxed or abandoned in part.

 

[EasternVol]

Bingo. European countries are going to be fighting other european countries with sticks and stones. They'll send all their newly minted immigrants to the front line. Who's immigrants are best?

Sticks and stones is funny. Get out of your cell every now and then.

 

[McDad]

What would it be worth if there was no demand for it?

You have not provided evidence there would be no demand. I tracked with your other points. I learned things I did not know. But you're losing me with the leaps you're making now. Whether other countries use our dollars or not, the dollar would still function as a medium of exchange between you and me, correct? If you wanted to sell your boat and I wanted to buy it, I would still offer and you would still accepts dollars, wouldn't you?

 

[hog88]

The interest is paid to the Federal Reserve?

Mostly to US banks who in turn pay interest on the loans they took from the FR to loan the money in the first place. With fractional reserve banking banks are only required to keep minimal reserves on hand, might even be zero at this point so they borrow from the FR.

 

[LSU-SIU]

Sticks and stones is funny. Get out of your cell every now and then.

Yup, I'm sure they have the best military on the planet which is why they keep begging Trump to back stop them and they are in almost panic mode.

 

[McDad]

Money creation is done by the public and private sector see Federal Reserve Act. The bounds put in place i.e. collateral was more or less relaxed or abandoned in part.

understood. do not understand the relevance to the ongoing discussion.

 

[evillawyer]

Parody, but about right

 

[tvolsfan]

In reality yeah it would be worthless. People would start to use barter and metal instead of the dollar, there is a well documented history of what happens when a currency gets devalued.

I feel like you’re using very poor comparisons (like the Roman Empire) and stretching them to fit today like it would be the exact same thing.

 

[LSU-SIU]

understood. do not understand the relevance to the ongoing discussion.

You guys appear to be making something that is simple, complex. Sorry for ruining your black panther party.

 

[hog88]

You have not provided evidence there would be no demand. I tracked with your other points. I learned things I did not know. But you're losing me with the leaps you're making now. Whether other countries use our dollars or not, the dollar would still function as a medium of exchange between you and me, correct? If you wanted to sell your boat and I wanted to buy it, I would still offer and you would still accepts dollars, wouldn't you?

Maybe, maybe not. If the dollars you offered me were worth .10 cents of what they were worth when I purchased the boat why would I sell it? I might trade you for something but why would I accept a wheel barrow full of your dollars when I would need 10 wheel barrows full to replace it.

 

[McDad]

Mostly to US banks who in turn pay interest on the loans they took from the FR to loan the money in the first place. With fractional reserve banking banks are only required to keep minimal reserves on hand, might even be zero at this point so they borrow from the FR.

Ok. Another point of confusion. Other countries use our currency to facilitate commerce. Other countries borrow our dollars to use as reserve currency. Those countries borrow that money from private (large, I assume) banks in America?

 

[LSU-SIU]

Parody, but about right

Most of your groceries were going to continue to go up, you ran out of global slave labor to support the exponential growth needed to sustain itself.

 

[tvolsfan]

You have not provided evidence there would be no demand. I tracked with your other points. I learned things I did not know. But you're losing me with the leaps you're making now. Whether other countries use our dollars or not, the dollar would still function as a medium of exchange between you and me, correct? If you wanted to sell your boat and I wanted to buy it, I would still offer and you would still accepts dollars, wouldn't you?

It’s crazy talk. Like if Saudi Arabia announces they won’t conduct oil trade in dollars we’re only going to accept our salaries in silver lol.

 

[McDad]

You guys appear to be making something that is simple, complex. Sorry for ruining your black panther party.

You didn't ruin the party, Forrest.

My first post about reserve currency was acknowledging I didn't understand it. The convo is simply moving too fast and you guys are making leaps that I am unable to. I don't have the understanding yall do. I am learning arithmetic. Yall are doing calculus.

 

[hog88]

understood. do not understand the relevance to the ongoing discussion.

It's supply and demand. Since there is nothing tangible backing up the dollar the only thing that gives it value is the demand for it. If countries started trading out US dollars for rupees all of those dollars get sent back here flooding the economy.

 

[McDad]

It’s crazy talk. Like if Saudi Arabia announces they won’t conduct oil trade in dollars we’re only going to accept our salaries in silver lol.

The premise seems similar to how we think of commodities. If everyone wants soybeans all over the world, the value goes up. If the world doesn't want soybeans, and only americans do, the value goes down. I understand that economic principle.

I just don't think our dollar functions like a commodity.