The U.S. is driving a large portion of the world’s population away from the dollar, which invalidates the U.S.’s biggest weapon. From John Wilder at wilderwealthywise.com:
“I’m no expert, but I’m pretty sure you can inflate construction costs and launder money through it.” – Ozark
I wonder if everyone can figure out why China built their own Internet now?
Biden has miscalculated. Again. As he has his entire life. He has moved from one miscalculation in his life to the next. So, it’s not surprising that perhaps the greatest failure in the history of the United States has shown up on his watch. Let’s go, Brandon, indeed.
To be fair, it’s not entirely Brandon’s fault. The United States economy, as I’ve gone to great pains to show over my posts, has been hollowed out over the years. We have gone from one that manufactures things and exports goods to one that mainly manufactures movies (we’re very good at that) and consulting and intellectual property and Starbucks™.
The thing that we’ve been best at is printing and then exporting dollars. For decades now, we have been exporting dollars that we printed and then importing stuff like fidget spinners and PEZ®. It was a great deal for us. People used those dollars and we got stuff, but it was essentially a global tax on the rest of the world.
That ability to tax, however, only works as long as people believe that the dollar is worth something, and that the holder of that economic power won’t bend the rules. Just like the bank runs up in Canada started when Trudeau broke the promise that the banks won’t steal people’s money, so the same principle applies to international affairs.