Biden is waiting for the dollar to collapse so they can be right there to "save" us with a programmable cbdc.
Value of the dollar
- Thread starter biggreydogs
- Start date
hahaha….. this is awesome. I love some good satire.
I mean, I hope this post was complete satire. Otherwise, holy ****ing shit.
This
And there goes any freedom you ever thought you had. Would be the worst thing of all time.
The euro has been trending towards an equal value with the USD for some time. 5 years ago it wasn't even close but now the euro is only slightly ahead of the USD (was roughly 10% a week ago).
Is the debt real in that it can be paid in dollars and that we can print more dollars? I understand that’s simplistic but isn’t it also true?
That has a real consequence in what it does the value (purchasing power) of the dollar. There’s no free lunch, printing to pay the debt is just a form of default that hits the pocket of everyone holding dollars instead of just the guy holding the debt instrument.
"We can guarantee cash payments from here on out, what we cannot guarantee is the purchasing power of that cash." -Alan Greenspan during remarks on Social Security, Feb 16, 2005
So the dollar is strengthening as our interest rates rise. Or do you think something else is going on?
A usual argument for higher rates strengthening the dollar is that it makes dollar-denominated bonds more attractive. So people bid up the price of dollars to get our paper.
Is that what's happening now?
What does it mean that the euro has fallen below parity with the dollar?
The euro has fallen below parity with the dollar, diving to its lowest level in 20 years and ending a one-to-one exchange rate with the U.S. currency.
www.google.com
Best article I could find. In short, lots of factors including dependence on Russian energy which I thought was interesting.
And yet the record corporate profit reports continue to roll in on a daily basis. Some "people" are doing quite good and those "people" make sure to line the pockets of lawmakers so that this trend can continue for as long as possible.
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.
Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become "profiteers," who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
― John Maynard Keynes, The Economic Consequences of the Peace
That assessment certainly carries weight today, but arguably less so than when Lenin or Keynes were writing. I suggest Yanis Varoufakis's new book Technofeudalism: What Killed Capitalism, for an-up-to-date look.
Wrong.
Inflation has been a social plague literally since the Chinese invented paper money.
Note they went through the exact same 'two step' of first issuing a convertible note, then removing the convertibility as with the Federal Reserve and the USD:
When Keynes was publishing that quote the Germans were on the precipice of the Weimar Hyperinflation.
Ever heard of it, and it's affect on Germany?
Because your statement belies staggering ignorance.
China is the new Russia my dude, with a capable military, they will take their shot eventually.
Wow, you sure are programmed to attack, aren't you?
If you'll look at my comment, I didn't say that view lacks merit, but that it isn't the whole story, and is arguably less true now than previously.
When something is said to be less true than previously, you can't really prove that wrong by going further back in history. And it doesn't help your argument to engage in personal attacks.
As for my suggestion that the inflation argument has less merit today, I gave you a reference to a book by one of the smartest guys in any room, whose modern assessment suggests things happening today that change the equation. You might want to check it out.
Argued by whom, with what logic? How did they convince you?
Was it less true in Zimbabwe?
Is it less true in Venezuela?
I disagree with your assessment of that particular Marxist as "one of the smartest guys in any room".
You're demonstrably ignorant on this subject.
You fell for MMT fer crissakes.
Well, yes, I never said any different.
My argument in this case is always that when it comes to this historic level of money printing we had during COVID was a bipartisan effort. Everybody was on board with it minus a few people. It was as close to united as the two parties get on anything. So it was something that as a country we all agreed on and now we are paying the bill for it, and doing as good of a job as we could honestly probably hope to.
Cool, there is tons of confusion on this subject.
My argument is that spending is still at ‘historical levels’ (~25% of GDP) and the White House shows in its budget projections that it intends to keep spending at these levels, way beyond historical norms. Way beyond what we’ve ever successfully taxed.
The last two fiscal years have seen us add over two trillion to the national debt each year. This is a ruinous path, we have to reign in spending to a level we can actually tax.
It’s a real problem to be sure.
The problem is actually that tax receipts have cratered.
NYT Daily literally just had a great pod on this yesterday, you should check it out.
It’s not great, it’s typical left wing BS.
I can go through it and show you what is being shown misleading, and more importantly, what isn’t being shown at all.
That is, if you’re interested in why that ‘great’ piece is more propaganda than analysis.
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Everything? Creating a new currency doesn't solve this problem.
Creating something like this would take huge support from all sides, which it wouldn't have.
Jim Tankersley:
Well, we cut a bunch of taxes over the last couple of decades, that includes the Trump tax cuts, which passed in 2017.
Michael Barbaro:
So the big thing that happened here is that we took in a heck of a lot less tax money than we did the year before.
Jim Tankersley:
So spending didn’t go up by nearly as much as tax revenues fell.
The big driver here is taxes. It’s that surprisingly big drop in tax revenue.
Michael Barbaro"
OK. Clearly, we have a tax problem.
Ok. We’ve established this without even once referencing the pesky facts in the situation. It’s just been declared. Accept the NYT version of reality.
Let’s look at tax revenue and spending as a percentage of GDP and see if we can prove the assertion, “spending didn’t go up by nearly as much as tax revenues fell.”
I want to use the White House’s own numbers, published online here.
This is about three decades of tax receipts and outlays, historical and predicted.
In our country's history it was only during the last three years of WW2 that Federal spending was higher.
Even 1942, the year we mobilized the country for war, the U.S. government only spent 23.8% of GDP.
The White House's numbers expose that Tankerly is nakedly lying:
"So spending didn’t go up by nearly as much as tax revenues fell."
He doesn't use any numbers, because the numbers show he isn't stating the truth. Tax collections are better than any year but one under Clinton (the post WW2 record of 20%), while the Federal spending is over 30% higher as a share of the economy than during the end of the Clinton years.
Back to the podcast:
Jim Tankersley:
So last year, we’re — oh, by the way, interest rates were not 5 percent for all of last year. They were lower for a while. And then they’ve jumped in recent months. But last year, the federal government spent $659 billion just to pay interest on the national debt, just for interest.
Michael Barbaro:
Wow.
Jim Tankersley:
And if rates stay at 5 percent, that number is going to go way up.
Michael Barbaro:
Right. And that’s a tremendous amount of money to have to take out of the economy just to pay interest.
The interest paid on the debt is not money 'taken out of the economy'.
This is an important point.
It is rent for the capital borrowed, and that capital is held by many, but mostly held by the rich.
This means hundreds of billions of dollars of wealth transfer to the rich built into the federal budget from now on.
This is why deficits were always terrible, even when idiots quoted idiots saying they weren't a problem.
These chickens were always coming home to roost.
I imagine that going to war, a recession/depression and a collapse of the US dollar may be a big enough crisis to get huge support from Americans. They will want a federal bailout after hyperinflation dilutes all their savings and purchase power. A programmable cbdc may give the federal reserve more control over the economy by incentivizing spending or adjusting the tax rate in particular sectors to change the habits of the people.
Your mention of a tin foil hat implies that this is a conspiracy theory. It is not. You could argue that you don't think it will happen in the usa, but that doesn't make it a conspiracy.
The USA has already launched the FedNow earlier this year which is the framework for a cbdc.
The federal reserve is considering a cbdc
Citi bank now has a digital token it is piloting
The IMF is experimenting with a digital currency
130 countries are currently exploring a cbdc
Either you were spouting the tinfoil hat part as a way of discrediting what I was saying, or you are naive to what is really going on. Either way, I encourage you to look this stuff up.
Having said that, nothing is set in stone at this point. I cant say a cbdc is a sure thing yet in the USA, but I can tell you that certain people want this to happen.
Frequently Asked Questions
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
Citi Develops New Digital Asset Capabilities for Institutional Clients
Citi, the leading global bank, serves more than 200 million customer accounts and does business in more than 160 countries and jurisdictions. Learn more today.
Technical Possibilities for a U.S. Central Bank Digital Currency | OSTP | The White House
By Dr. Alondra Nelson, head of the White House Office of Science and Technology Policy Alexander Macgillivray, Principal Deputy United States Chief Technology Officer Nik Marda, Policy Advisor President Biden often summarizes his vision for America in one word: Possibilities. A “digital dollar”...
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You're right in that they'll use benefit disbursement to Trojan horse this into the economy.I imagine that going to war, a recession/depression and a collapse of the US dollar may be a big enough crisis to get huge support the people. They will want a federal bailout after hyperinflation dilutes all their savings and purchase power. A programmable cbdc may give the federal reserve more control over the economy by incentivizing spending or adjusting the tax rate in particular sectors to change the habits of the people.
Your mention of a tin foil hat implies that this is a conspiracy theory. It is not. You could argue that you don't think it will happen in the usa, but that doesn't make it a conspiracy.
The USA has already launched the FedNow earlier this year which is the framework for a cbdc.
The federal reserve is considering a cbdc
Citi bank now has a digital token it is piloting
The IMF is experimenting with a digital currency
130 countries are currently exploring a cbdc
Either you were spouting the tinfoil hat part as a way of discrediting what I was saying, or you are naive to what is really going on. Either way, I encourage you to look this stuff up.
Having said that, nothing is set in stone at this point. I cant say a cbdc is a sure thing yet in the USA, but I can tell you that certain people want this to happen.
Frequently Asked Questions
The Federal Reserve Board of Governors in Washington DC.www.federalreserve.govCiti Develops New Digital Asset Capabilities for Institutional Clients
Citi, the leading global bank, serves more than 200 million customer accounts and does business in more than 160 countries and jurisdictions. Learn more today.www.citigroup.com
Technical Possibilities for a U.S. Central Bank Digital Currency | OSTP | The White House
By Dr. Alondra Nelson, head of the White House Office of Science and Technology Policy Alexander Macgillivray, Principal Deputy United States Chief Technology Officer Nik Marda, Policy Advisor President Biden often summarizes his vision for America in one word: Possibilities. A “digital dollar”...www.whitehouse.gov
You'll eventually need it to get your tax refund.
It'll be regular old fiat USD, with any potential that cash gives you for privacy eliminated.
It may be protected with cryptographic cyphers, but it will be a monetary pool that they can inflate at their whim.
China has a national debt of 15 trillion. Plus the one child/ no girls policies are coming home to roost. They ****ed.
That is because the euro is losing value compared to the UxS dollar, you dumb sumbitch! It is because the US dollar has maintained teletive value compared to other world currencies.
10 years ago the US dollar was = to $1.65 Euro....and 1.99 Brit Pound Sterling...now because of US dollar strength, the difference is now just pennies...
Come on scruffy....I would have thought, even you should be better than that!
Trump was a major part of the problem.
Let’s be honest here. Spending has been out of control for a long time. Neither party has any right to point fingers.
The fact some people think this is all about Biden is incontrovertible proof of how little they get it.
I would guess this is a product of globalization. Nato countries are so intertwined in their policy, and trade that their currency value has trended toward the dollar.
I imagine that going to war, a recession/depression and a collapse of the US dollar may be a big enough crisis to get huge support from Americans. They will want a federal bailout after hyperinflation dilutes all their savings and purchase power. A programmable cbdc may give the federal reserve more control over the economy by incentivizing spending or adjusting the tax rate in particular sectors to change the habits of the people.
Your mention of a tin foil hat implies that this is a conspiracy theory. It is not. You could argue that you don't think it will happen in the usa, but that doesn't make it a conspiracy.
The USA has already launched the FedNow earlier this year which is the framework for a cbdc.
The federal reserve is considering a cbdc
Citi bank now has a digital token it is piloting
The IMF is experimenting with a digital currency
130 countries are currently exploring a cbdc
Either you were spouting the tinfoil hat part as a way of discrediting what I was saying, or you are naive to what is really going on. Either way, I encourage you to look this stuff up.
Having said that, nothing is set in stone at this point. I cant say a cbdc is a sure thing yet in the USA, but I can tell you that certain people want this to happen.
Frequently Asked Questions
The Federal Reserve Board of Governors in Washington DC.www.federalreserve.govCiti Develops New Digital Asset Capabilities for Institutional Clients
Citi, the leading global bank, serves more than 200 million customer accounts and does business in more than 160 countries and jurisdictions. Learn more today.Technical Possibilities for a U.S. Central Bank Digital Currency | OSTP | The White House
By Dr. Alondra Nelson, head of the White House Office of Science and Technology Policy Alexander Macgillivray, Principal Deputy United States Chief Technology Officer Nik Marda, Policy Advisor President Biden often summarizes his vision for America in one word: Possibilities. A “digital dollar”...
I'm aware all of these central banks are looking at CBDC's. That still doesn't solve the issue of any hyperinflationary activity.
I probably got really into the market-ticker and ZeroHedge probably 20 years ago. They've been saying hyperinflation is right around the corner for a long time. It's just not something I'm going to be worried about.
Jim Tankersley:
Well, we cut a bunch of taxes over the last couple of decades, that includes the Trump tax cuts, which passed in 2017.
Michael Barbaro:
So the big thing that happened here is that we took in a heck of a lot less tax money than we did the year before.
Jim Tankersley:
So spending didn’t go up by nearly as much as tax revenues fell.
The big driver here is taxes. It’s that surprisingly big drop in tax revenue.
Michael Barbaro"
OK. Clearly, we have a tax problem.
Ok. We’ve established this without even once referencing the pesky facts in the situation. It’s just been declared. Accept the NYT version of reality.
Let’s look at tax revenue and spending as a percentage of GDP and see if we can prove the assertion, “spending didn’t go up by nearly as much as tax revenues fell.”
I want to use the White House’s own numbers, published online here.
This is about three decades of tax receipts and outlays, historical and predicted.
In our country's history it was only during the last three years of WW2 that Federal spending was higher.
Even 1942, the year we mobilized the country for war, the U.S. government only spent 23.8% of GDP.
The White House's numbers expose that Tankerly is nakedly lying:
"So spending didn’t go up by nearly as much as tax revenues fell."
He doesn't use any numbers, because the numbers show he isn't stating the truth. Tax collections are better than any year but one under Clinton (the post WW2 record of 20%), while the Federal spending is over 30% higher as a share of the economy than during the end of the Clinton years.
Back to the podcast:
Jim Tankersley:
So last year, we’re — oh, by the way, interest rates were not 5 percent for all of last year. They were lower for a while. And then they’ve jumped in recent months. But last year, the federal government spent $659 billion just to pay interest on the national debt, just for interest.
Michael Barbaro:
Wow.
Jim Tankersley:
And if rates stay at 5 percent, that number is going to go way up.
Michael Barbaro:
Right. And that’s a tremendous amount of money to have to take out of the economy just to pay interest.
The interest paid on the debt is not money 'taken out of the economy'.
This is an important point.
It is rent for the capital borrowed, and that capital is held by many, but mostly held by the rich.
This means hundreds of billions of dollars of wealth transfer to the rich built into the federal budget from now on.
This is why deficits were always terrible, even when idiots quoted idiots saying they weren't a problem.
These chickens were always coming home to roost.
I think both things can be true. You're looking at % of GDP. I'm guessing he's looking at raw numbers.
As of right now, our tax receipts are down 9% YoY.
Fiscal Data Explains Federal Revenue
Check out @FiscalService Fiscal Data’s new federal revenue page! #FederalRevenue
fiscaldata.treasury.gov
Spending is down 2% YoY.
Fiscal Data Explains Federal Spending
Check out @FiscalService Fiscal Data’s new federal spending page! #FederalSpending
fiscaldata.treasury.gov
I think that's what he was talking about, so I would hardly call that propaganda, and honestly if you disagree that's fine.
Big picture I don't disagree with anything you posted. We know from Hauser's law that generally tax receipts are around 19.5% of GDP and very rarely over that. IMO we need to bring spending down into that 20% range. I agree that it's an issue. I think we just disagree on a few points.
1. I don't think it's a partisan issue. I think both parties, no matter what they say, are in no rush to fix this.
2. I don't think some doom and gloom scenario is on any sort of short horizon and I'm just not going to worry about it.
