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RE: A Collection of Facts About The Economy to Trigger Your Cognitive Dissonance & Disbelief: Reserve Ratio, How Money is Created, Global Wealth Statistics and How People Go Broke
hi @snoreball, @vimukthi
Great comment. Just one question: US can print as much as they want and cause inflation (like any other country could). But in case of US this inflation would hit entire world, so in a way US is quite safe because (knowing reality) many other countries will do everything to avoid US economy collapsing. Am I right?
Basically what Im trying to say, is that it US do not have to worry so much because they are still in charge of international used currency, so their problem = everyones problem.
Yours
Piotr
You are correct. All the other currencies used to be pegged to USD during the time the gold standard was still a thing. But Nixon changed this and you can no longer redeem gold for USD. But all the other countries just left their currencies pegged to USD because during the mid 20th century USA had more gold than rest of the world combined and their economic dominance was unchallenged.
When it comes to fiat currency, USA has the least to worry about.
US isn't safe from an economic collapse. Furthermore, we are in a globalized world. Your doomsday scenario can be applied to other superpowers like China, Germany, Russia and UK.
A world collapse can start from anywhere. And if we can, we will try to bail them out.
I dont think we ever had a chance to get to know each other. Great comment @snoreball
Have a great upcoming weekend
Piotr