You can only do that so much before people stop trusting your currency. Up until recently, the Saudis sold oil exclusively for USD, now they’ve started selling it for other currencies including yuan.
China sells consumer goods to the US for USD. China gives that USD to the Saudis for oil. The Saudis give that USD back to the US in exchange for bombing civilians in Yemen. That’s how things have worked for the past like 50 years.
If the USD (and the US) stops being seen as reliable, then eventually the whole thing falls apart, and we’re seeing the first signs of that already. The Saudis will start telling us our bombs are too expensive and China will say the scraps of paper we give them aren’t worth it. If we’re not dropping bombs on behalf of oppressive monarchies in exchange for oil, and importing cheap goods from underpaid overseas workers, then what do we even have left, as a country?
It’s probably for the best for the world in the long term that that system falls apart (provided Americans don’t go apeshit and start WWIII, which is a big assumption), and in the very short term of course using the infinite money hack solves a lot of problems, but in the medium term, it’s gonna be rocky.
Fortunately, there aren’t any other major crises we’ve been kicking down the road for short term benefits that are going to reach a head in the near future, so we can focus excluively on that.
You can only do that so much before people stop trusting your currency. Up until recently, the Saudis sold oil exclusively for USD, now they’ve started selling it for other currencies including yuan.
China sells consumer goods to the US for USD. China gives that USD to the Saudis for oil. The Saudis give that USD back to the US in exchange for bombing civilians in Yemen. That’s how things have worked for the past like 50 years.
If the USD (and the US) stops being seen as reliable, then eventually the whole thing falls apart, and we’re seeing the first signs of that already. The Saudis will start telling us our bombs are too expensive and China will say the scraps of paper we give them aren’t worth it. If we’re not dropping bombs on behalf of oppressive monarchies in exchange for oil, and importing cheap goods from underpaid overseas workers, then what do we even have left, as a country?
It’s probably for the best for the world in the long term that that system falls apart (provided Americans don’t go apeshit and start WWIII, which is a big assumption), and in the very short term of course using the infinite money hack solves a lot of problems, but in the medium term, it’s gonna be rocky.
Fortunately, there aren’t any other major crises we’ve been kicking down the road for short term benefits that are going to reach a head in the near future, so we can focus excluively on that.