Can you even imagine how happy putin is with his bitch?
I am starting to think about that Trump just learned what a tariff is during this election cycle. Still has no idea how they work, what their purpose is, when they should be used, nor how they impact local and global economies but, gosh darn it, if he isn’t excited to show off his new knowledge.
Maybe if they have him write out the word “TARRIF” on a piece of paper and put that paper on the white house fridge, he can be proud of it everyday and be able to move on to his next vocabulary word.
Relearned, maybe?
He was also really big on putting tariffs on everything out of China in the 2016 election cycle.
I’ve said it before and I’ll say it again: the world needs a neutral reserve currency, not one issued and controlled by whatever country happens to be the dominant superpower.
Who would issue it? What would it be backed by? Gold is globally valued due to its material value, but good luck getting your local coffee place to take it.
Congratulations, you’ve stumbled upon the one place where cryptobros would have a point if they weren’t mostly trying to make their “currencies” be investments rather than actual currencies.
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It would have to be issued by some world central bank.
Money doesn’t need to be backed by anything, necessarily. Or, I guess you could say money is “backed” by all the goods and services available to purchase.
For anything more than basic bartering, i.e. credit, it needs to be backed by an assurance that the fiat currency will be managed properly. Your basic loan is predicated on the trust that when you borrow $1000, the US won’t go and print another $1000 for shits and giggles and halve the value of what you get repaid. (I’m ignoring interest for simplicity here.)
For example, let’s say a car costs $30,000. I borrow that on a three year loan. But after one year, a maniac takes charge of the federal reserve and starts printing money. Now, since the value of the dollar has dropped, the same car costs $90k, but I’m still buying it at the original price. (Remember, the bank owns the car until I pay off the loan.)
For a real-world example, look at any hyperinflation scenario. When the unit value of a currency drops that fast, nobody wants to trade in that currency, because they would lose buying power.
This is why a currency has to be backed by a trustworthy body. Cryptocurrency is great, but if the operators have no consequences for manipulating it, then it’ll never replace traditional government-backed currency.
…it needs to be backed by an assurance that the fiat currency will be managed properly.
That’s the point of having a global central bank. They would manage it, and we would want to ensure that all appropriate mechanisms for oversight and accountability were in place. Transparency would also be of high importance.
Edit: I should point out that this is already somewhat in place. The US dollar, a fiat currency, is currently the world reserve currency, and it’s managed by the US federal reserve central bank. The problem is, the US federal reserve is the US central bank and it is not neutral, nor is it accountable to the rest of the world.
*cough* BTC *cough*
OP said currency, not the post post-modern equivalent of an unregulated stock market.
It can be regulated if your country wants to do so.
Switching to a “currency” that has never been stable and has a huge volatility problem? Sorry, I want that gallon of milk I bought in the supermarket to be roughly the same price when I need more next week than when I got it this week.
It’s very telling that most advocates of Bitcoin are very happy to volunteer how much money they’ve made investing in it. That’s not how currency is supposed to work.
To be fair, it is only volatile because you view it from the perspective of something you feel is stable (perhaps USD). If you instead viewed other currencies from the view of, let’s say, bitcoin then the other currencies would be fluctuating wildly. It’s a bit like Alabama and time: it’s all relative.
I’m viewing it from the perspective of a regular consumer. That’s really all that matters to most people. That if milk costs about $3 last week, it will cost around the same amount this week. Changes will come, but come slowly.
I’ve seen USD go up and down 30% compared to other “stable currencies”. Stability of BTC would come from adoption from a larger number of people, after the initial price spike caused by increasing demand.
I bought some in 2023 for 30k and sold it for 60k over a year later. Right now it’s worth 100k. I don’t think people should by at this high a price range, it’ll probably be much more affordable in a year and spike again later before and after the halvening.
At some point it’ll be too big to pump or dump, and doing so is already highly illegal in many countries. There’s basically no risk of a person buying in and having it decline to never recover.
Yes, the dollar is, as all currencies are incredibly volatile in times of crisis. No shit.
Bitcoin has, as I said, never been stable. It’s not even designed to be stable. Week over week, in general economic times, the dollar has the same value. You simply cannot say the same about Bitcoin. Again, this is why most advocates of Bitcoin are happy to volunteer how much money they’ve made investing in it.
Unless you are a high-end currencies trader, people generally don’t talk about how much richer they are in Euros this week than they were last week. Because that’s not how currencies are supposed to work.
Cool meme and all, but the fact that you yourself are talking about when someone should or shouldn’t invest in bitcoin just proves my point. That’s the opposite of stability. People don’t regularly move their savings from dollars to euros and back depending on which is worth more.
Good for you for getting rich on your investment opportunity though. I’m sure that’s very nice for you.
You couldn’t find the point if it was layed out cleanly before you, as I clearly explained it is not currently what it very easily could become, and also that it is virtually no long term risk even in its current state.
Tariffs will further devalue the dollar.
To the contrary: the value of the US dollar, as measured against other currencies, has surged in the past weeks amidst Donald Trump’s announcements of tariffs, because markets expect them to bump prices and higher prices, in turn,
wouldcould prompt the Federal Reserve to raise interest rates, just as we saw in 2022.TL;DR: higher tariffs => higher prices => Federal Reaerve raises interest rates => US dollar appreciates
The incoming Trump administration could counter this dynamic by changing the mandate under which the Federal Reserve has been operating for about a century and bringing it under the executive, stripping it of its independence.
I don’t think the BRICS are interested in giving up on the dollar. Two of those countries have some of the biggest dollar reserves there are outside of the US.
I think they’re more interested in bilateral trades/payments using their own currencies.
Dumb dumb dumb dumb
BRICS, Canada and Mexico should be making a trade treaty right now, before Trump even takes office.
Considering R in BRICS stands for russia, no, they certainly shouldn’t.
I don’t know if you noticed, but the B stands for Brazil and those 2 countries aren’t exactly buddy-buddy. Treaties are more than their constituent members.
What the US wants and what’s good for other countries are not the same things.
But I am European, anything that breaches sanctions against putins russia isn’t good for me either.
Russia wouldn’t really matter in the equation. China, Brazil, Mexico, Canada would be the main players. They don’t like each other, and have some serious diplomatic issues of their own, but could easily agree to stand together in self interest. Pulling in any other major US trading partners would also help all of them.
