The USD Blackhole - A Currency Of Plunder
Hey Jessmericans
The past few weeks have seen social unrest in the US grip the news and the world's attention. The US is in a state of flux as people wake up the raw deal they were getting and are voicing their opinions, what many don't realise is that for as unfortunate as their situation is, they still live in a country with a crazy high standard of living. All the talk of privilege is relative, theirs one privilege we don't talk about, and that's US Dollar privilege.
I'm not discounting the fact that there are people in the US suffering under financial oppression, I think the rest of the world is well aware of what it's like too, and the club they beating us with is called the USD.
Exporting inflation, importing value
As the world reserve currency, the US Dollar provides America with some distinct advantages. As the money printing continues, it splits society into the haves and have nots, its redistribution of wealth and the entire and political elite benefit from it.
Americans are being marginalised by their currency, eating up the wealth from the poorest up and now that it's starting to affect the middle class, we see protests in the streets.
What most people don't know, however, is that money printing is not only stealing from US citizens but from the rest of the world too. The rest of the world pegs itself to dollars; the rest of the world has to pay for things in dollars; the rest of the world services their debt in dollars.
Having so much of the world dependant on this currency means when you print you not only take wealth from your money, but you extract it from other countries too.
The US dollar as a reserve currency is now exercising its full might and will eat up every other fiat currency first before it starts feeding on itself if nothing changes.
Rather the devil we know
The problem I see with retiring the US Dollar is every other currency is worse off, are we going to the GBP? The Yaun? The Ruble? None of those countries have the resources and plumbing to take over giving the world more of its currency, and even if they could, would the world want to shift the power back to the Brits? Give the Russians or Chinese a chance? Not that I can see, they're just don't scream freedom as fakely and loudly as the US does and we all love the sound of freedom don't we?
World reserve options
We've all seen how the Euro experiment has gone in having a one-world currency trail run, and that was a total disaster, pretty sure it's going to come apart soon enough as Big Germany and Big France let Italy, Spain and the rest fail under policies that suit their nations better. The Euro offers very little wiggle room and nuance for other countries, and it's under so much strain now, the break if when it happens will send lots of Europe into depression.
The only other options I see would be an SDR (special drawing rights) and a basket of currencies supporting run by the World Bank, which is still basically the US so that nothing would change much but the coat of paint.
The sound approach
If we would ditch fiat as the world reserve currency, the most obvious choice would be gold, but then who keeps it? Who manages it? How distributes it? Who audits it? Putting the world's economy on a gold standard might help fiscal and monetary policy,. Still, it doesn't make it full proof and an improvement in terms of speed and distribution it's far more centralised putting governments in place to have more power.
Also, a gold standard is only temporary reset, if we can reduce debt through a gold standard, it won't be long before we think we're in the clear and will go back to our old ways. Who can resist infinite money printing? No human can!
I guess what I'm saying is, the answer is up in the air, will BTC take it on or will it ignore the world and let it come to BTC when it's ready. Time will tell.
Have your say
What do you good people of HIVE think? Is it time for the US Dollar to retire as a world reserve currency?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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