• krisevol@lemmus.org
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      5 months ago

      We have been running on old money for decades. We used China for our slave labor, and now they make the best stuff and don’t need us. That’s why the US is 70% service industry now. We are basically two rich trust fund babies jerking ourselves from off surrounded by slave labor, but eventually we run out of money. We are at the running out of money phase

      • maplesaga@lemmy.world
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        5 months ago

        The US still holds the reserve currency, that they force other countries to use via military force. Which allows them to export their inflation, and to print money to build up the military they use to protect its usage.

        I think the problem is the population got too heavy into taking in debt via this mechanism, always asking for more and more tax cuts and more social programs, and China themselves stopped buying US treasuries in 2016. Then locking Russia out of US bonds further exacerbated the issue, as its no longer seen as a neutral asset, so bond yields rise as less people buy them.

        Then the tariffs and higher interest rates cause debt crisis in other countries by limiting their access to USD, which makes them attempt to move away, which is likely how gold prices nearly doubled in a single year. Its pretty wild whats happening.