pascoe-meter update, page-69

"Today, the world makes stuff and supplies the US, and would have drained all of its gold if the gold standard had stayed. The US conned the world with their papers and the world is waking up to this ponzi scheme."


The USA is still the world's largest consumer, the demand side for all that stuff being produced... no demand, no need for stuff. USD becomes the global reserve currency because everyone else runs a trade surplus with America.

The world happily plays along accepting unbacked USD for payment, printing even more to remain export-competitive. This won't change until America consumes less relative to others, e.g. China turning net importer. That's how Renminbi could take over, by China forcing its currency down everyone's throats like US has done.

I think all of this is rather ironic because America is trying to devalue its currency, help correct the trade imbalances, export its way out... but rest of world, namely China, isn't playing ball.


Rowingboat