The dollar spread, based on the only one market Hypothesis, etc. is highly context dependent on the size of the US economy/dollar denominated world economy. Once you have an equally large economy in the world economy that does not 'adopt' the dollar (esp. if it coalesces other economies around it) you realise the limits of the dollar's spread and that a second market maybe possible.
The next decade will be very interesting. The Global South is finally entering the global market as partners, and not just colonies or mines for the 'empire'. Yet that is in large part because of the efforts of China and the BRI. The US entered the post-WWII period as the only major industrial power capable of export oriented growth. All the other industrial powers were rebuilding. So it was natural that the US dollar became the natural global currency. The main problem is that the US was not content to be the world's factory and the world's banker. It also wanted to be the 'arsenal of democracy' and become the world's policeman as well. And began to use industry, trade and monetary policies as part of their arsenal. Except we gave up our industrial base at the same time. The majority of trade is now with China, and we are now starting to see the shift from the dollar to the yuan. And the Global South is tired of the empire's bullying tactics. As soon as the US seized Russia's gold and fully weaponized the SWIFT system, the BRICS realized they needed a different 'natural currency'. It might be the yuan. It might be a basket of currencies. But I don't expect the dollar empire to survive beyond this decade.
Hi Hong Academy recently talked about you and the lecturer have combined what you think about with Zoltan Pozsar idea also and come out with a new conclusion. Money is different and got level. shadow bank system. credit all these stuff. it would be amazing if you two can appear in the same screen.
This account is so functionalist it is hard to accept. The global monetary system is an institution that holds so much power, even as it is contested, concealed, uncertain and unstable. It is incomplete to suggest the singular axis of antagonism is between national governments and global markets. The correspondence problem between polities and economies is not only substantial, it could well be unsustainable. Yet monetary theory is perhaps the part of economics that most irresponsibly market fundamentalist in its egregious violation of the economistic fallacy. The spread of the dollar system is of benefit to the people with dollars, and the consequence is global harm.
I'm curious to understand more what you mean here. What do you mean by "functionalist"? Can you expand more what the "correspondence problem" is? Can you also help me unpack the "egregious violation of the economistic fallcy"? Just trying to learn and your comment caught my attention :-D
The US was financially exhausted by the funding for science and technology education, the Great Society program, the space program, and the Vietnam War.
if you weaponize the dollar, people will stop using it. there are so many alternatives to replace dollar. denationalisation of money and deglobalisation of dollar will happen. bitcoin, yuan, rupee etc.
Since China is almost cashless society, BRICS is attracting more potential members from all over, who will need to quote in dollars? Africa-China Forum is around the corner, China Development Bank should be bring something to the table
“As long as the international monetary system holds, it seems to me that we’re not going to get any sustained inflation…” Enter de-dollarization… Now, what did you say again?
This man may be an economist but he is not economical in words. He is like fiat currency, a lot of ones and zeroes with no gold behind it. I had to stop listening when I had not heard one crisp original idea.
@@Rnankn Quite the contrary. I was looking for anything to challenge my perspective and I got nothing that either challenged or confirmed what I understand. I got a word salad about a dead economist.
@@smiff9567 And not apparently PRACTICAL either. If one wants to wax historic, then don't talk about the "global role of the dollar" as a merely abstract historical artifcact and ignore the actual role it is now playing. Past is prelude. One doesn't write Act One of a three act play, and then fail to write the other two acts. So what? What is the connection? Why does this matter? I am not interested in a person's desire to write a book about their own interests. It had better inform larger life for other or it is essentially a waste and they have no reason to listen to to the fruits of this man's apparent self gratifying impulse.
It's bonkers to think that any other quotients than national productivity and national intellectual property would be used in calculating macro national value. Gold is artificially inflated in value by the weird consensus of tack merchant idiots.
The dollar spread, based on the only one market Hypothesis, etc. is highly context dependent on the size of the US economy/dollar denominated world economy. Once you have an equally large economy in the world economy that does not 'adopt' the dollar (esp. if it coalesces other economies around it) you realise the limits of the dollar's spread and that a second market maybe possible.
The next decade will be very interesting. The Global South is finally entering the global market as partners, and not just colonies or mines for the 'empire'. Yet that is in large part because of the efforts of China and the BRI.
The US entered the post-WWII period as the only major industrial power capable of export oriented growth. All the other industrial powers were rebuilding. So it was natural that the US dollar became the natural global currency.
The main problem is that the US was not content to be the world's factory and the world's banker. It also wanted to be the 'arsenal of democracy' and become the world's policeman as well. And began to use industry, trade and monetary policies as part of their arsenal.
Except we gave up our industrial base at the same time. The majority of trade is now with China, and we are now starting to see the shift from the dollar to the yuan. And the Global South is tired of the empire's bullying tactics.
As soon as the US seized Russia's gold and fully weaponized the SWIFT system, the BRICS realized they needed a different 'natural currency'. It might be the yuan. It might be a basket of currencies. But I don't expect the dollar empire to survive beyond this decade.
Hi Perry, what does the end of libor mean if anything for the offshore dollar system?
Thank you!
They've made a couple attempts to replace it that had similarly long acronym names. Don't know what ended up happening
Hi Hong Academy recently talked about you and the lecturer have combined what you think about with Zoltan Pozsar idea also and come out with a new conclusion. Money is different and got level. shadow bank system. credit all these stuff. it would be amazing if you two can appear in the same screen.
This account is so functionalist it is hard to accept. The global monetary system is an institution that holds so much power, even as it is contested, concealed, uncertain and unstable. It is incomplete to suggest the singular axis of antagonism is between national governments and global markets. The correspondence problem between polities and economies is not only substantial, it could well be unsustainable. Yet monetary theory is perhaps the part of economics that most irresponsibly market fundamentalist in its egregious violation of the economistic fallacy. The spread of the dollar system is of benefit to the people with dollars, and the consequence is global harm.
I'm curious to understand more what you mean here. What do you mean by "functionalist"? Can you expand more what the "correspondence problem" is? Can you also help me unpack the "egregious violation of the economistic fallcy"? Just trying to learn and your comment caught my attention :-D
Nixon was forced to abandon the fixed system too - Vietnam War : am I joke to you !?
lol
The US was financially exhausted by the funding for science and technology education, the Great Society program, the space program, and the Vietnam War.
if you weaponize the dollar, people will stop using it. there are so many alternatives to replace dollar. denationalisation of money and deglobalisation of dollar will happen. bitcoin, yuan, rupee etc.
Since China is almost cashless society, BRICS is attracting more potential members from all over, who will need to quote in dollars? Africa-China Forum is around the corner, China Development Bank should be bring something to the table
“As long as the international monetary system holds, it seems to me that we’re not going to get any sustained inflation…” Enter de-dollarization… Now, what did you say again?
A novelist
Its all a legal ponzi sceme.
Can be said for any money
This man may be an economist but he is not economical in words. He is like fiat currency, a lot of ones and zeroes with no gold behind it. I had to stop listening when I had not heard one crisp original idea.
If you approach things already knowing the conclusion you want and expect, you’re bound to be disappointed. And to learn very little.
@@Rnankn Quite the contrary. I was looking for anything to challenge my perspective and I got nothing that either challenged or confirmed what I understand. I got a word salad about a dead economist.
History books, which this is about, are documentary not theoretical.
@@smiff9567 And not apparently PRACTICAL either. If one wants to wax historic, then don't talk about the "global role of the dollar" as a merely abstract historical artifcact and ignore the actual role it is now playing. Past is prelude. One doesn't write Act One of a three act play, and then fail to write the other two acts. So what? What is the connection? Why does this matter? I am not interested in a person's desire to write a book about their own interests. It had better inform larger life for other or it is essentially a waste and they have no reason to listen to to the fruits of this man's apparent self gratifying impulse.
It's bonkers to think that any other quotients than national productivity and national intellectual property would be used in calculating macro national value.
Gold is artificially inflated in value by the weird consensus of tack merchant idiots.