Quick and dirty: When you have the global reserve currency, the most profitable thing for you to export is the currency. Therefore, domestic production of everything besides the currency is sacrificed. The US enslaves the rest of the world in dollar denominated debt, they can’t print dollars to repay, have to manufacture things to get dollars to repay…which creates competitive, cheap foreign labor.
Discussion
Which is why tariffs are a retarded strategy
Unless you’ve decided that you don’t want the world reserve currency anymore (because of Triffin’s dilemma). This is Jack Mallers’ thesis.
I guess I just don’t give a shit because of Bitcoin lol
YeahI think like gromens got something similar. We've gotten so bad that we can't make weapons so we've lost the ability to war. Can't really be a nation at that point.
I think the dod is in control now and will sacrifice anything it needs to
100%. The second part of Mallers’ thesis is the following: not only does the US no longer want to issue the world reserve currency, but nobody else wants to either. Sure you get free stuff for a little bit, but then you hollow out your middle class. Not a great deal in the long run.
If nobody wants to issue a world reserve currency, we’re going to have a neutral world reserve currency.
Dayum. That is pretty spot on of what we see happens globally throughout history.