It’s strange that this has been a talking point of the Right (I’m extreme left/anarchist and I’ve expected this development as well) and most people didn’t take it seriously. Glad we’re even more dependent on the US, now that their dollar is going to collapse. Yay!
BRICS is slowly gaining steam, Saudis no longer selling fossil resources exclusively in Petro Dollar, African nations are calling for their members of parliament do derisk of a US dollar collapse by selling whatever dollars they’re still holding, inflation is rising due to the FED raising interest rates.
Probably won’t happen this year but I’d be surprised if the dollar didn’t start dipping in 2024.
Yeah this person just lined up a series of completely idiotic statements. The FED raising rates lowers inflation, and inflation in the US is back down to 3% as of this past quarter. They also claimed BRICS was taking off when it’s literally quite the opposite. BRICS is never going to happen with its member countries basically in opposition of one another.
I think your assessment of what the Fed is doing is either based on underestimating the complexity of the monetary system or you’ve been misinformed by people who don’t have your interests at heart. Please check this comment where I provide a source for my assessment of what the Fed is doing: https://lemmy.ml/comment/1684511
Feel free to provide me with better sources that aren’t like “everything is fine, don’t worry, your money is safe and the Fed is doing this in your interest” without providing meaningful data to support that.
Inflation rates are sinking. That’s it. No need to also debunk your bullshit about why inflation is rising when it isn’t.
Or do I need to google the US inflation rates for you?
At first, raising interest rates in the face of high deficit-driven inflation can slow inflation down, which makes it seem like it’s working. This is because the Fed can potentially reduce the rate of bank lending, and thus slow the economy down a bit, even as those fiscal deficits keep pouring in. In other words, they’re not affecting the primary cause of inflation, but they’re subduing enough other things that they’re able to push back against the primary cause, indirectly.
Over time, however, raising interest rates and keeping them high in an environment where runaway government deficits and high government debts are causing inflation runs the risk of exacerbating inflation. High interest rates on large amounts of government debt (>100% of GDP) will result in even bigger runaway deficits, because now they are dealing with ballooning interest payments on the debt, and this ironically pushes more money into the economy.
However, high interest rates also exacerbate deficit-driven inflation, specifically during eras with unusually large sovereign debts and deficits (e.g. >100% debt-to-GDP and >7% structural deficits-to-GDP). Each increase in interest rates puts some disinflationary pressure on the private sector, but also results in even larger public sector deficits pouring money into the economy. If those public sector deficits are big enough, then high interest rates can actually be inflationary.
Not sure what’s so funny about that. China still has a bigger economy growth than the US (6,3% vs less than 3%). India is also above 6%. So yeah, these two alone will get closer to the US.
It’s strange that this has been a talking point of the Right (I’m extreme left/anarchist and I’ve expected this development as well) and most people didn’t take it seriously. Glad we’re even more dependent on the US, now that their dollar is going to collapse. Yay!
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BRICS is slowly gaining steam, Saudis no longer selling fossil resources exclusively in Petro Dollar, African nations are calling for their members of parliament do derisk of a US dollar collapse by selling whatever dollars they’re still holding, inflation is rising due to the FED raising interest rates.
Probably won’t happen this year but I’d be surprised if the dollar didn’t start dipping in 2024.
That’s probably the most none-sensical statement I read for quite some time.
Yeah this person just lined up a series of completely idiotic statements. The FED raising rates lowers inflation, and inflation in the US is back down to 3% as of this past quarter. They also claimed BRICS was taking off when it’s literally quite the opposite. BRICS is never going to happen with its member countries basically in opposition of one another.
Can you lay out precisely how its member countries are in opposition of one another?
I think your assessment of what the Fed is doing is either based on underestimating the complexity of the monetary system or you’ve been misinformed by people who don’t have your interests at heart. Please check this comment where I provide a source for my assessment of what the Fed is doing: https://lemmy.ml/comment/1684511
Check yesterday’s comment of mine: https://lemmy.ml/comment/1684511
Feel free to provide me with better sources that aren’t like “everything is fine, don’t worry, your money is safe and the Fed is doing this in your interest” without providing meaningful data to support that.
Inflation rates are sinking. That’s it. No need to also debunk your bullshit about why inflation is rising when it isn’t. Or do I need to google the US inflation rates for you?
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Wait, you’re claiming inflation is rising because of increased interest rates? That’s a first. Cite?
One example with insightful graphs: https://www.lynalden.com/inflation-vs-interest-rates/
Some quotes:
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Hahahahahaha
Not sure what’s so funny about that. China still has a bigger economy growth than the US (6,3% vs less than 3%). India is also above 6%. So yeah, these two alone will get closer to the US.
Thanks for the constructive insight!
The US’s dollar is not going to collapse any time soon. The market is very strong.
Unfortunately, when student loans resume in September though, the US might be in for a rocky ride - and thus, the rest of the world too.
The dollar isn’t even remotely in a position to collapse. Where are you getting that idea from?