06 Nov 10
4 edits
From a few papers I've read, the basic thesis is that America as an Empire can do what she wants with her dollar and spend as she wants to because everyone else is holding dollars, and because of the oil/dollar fix and US dollar as International currency, there's nothing anyone can do about it.
In short whether America is fiscally responsible or not, her Empire(the rest of the world) will always be there to pick up the tab.
Where is the flaw in this argument? And at what point does inflationary pressure collapse the 'spend like there's no tomorrow' premise?
As a sidebar we can also kinda of think of this as the supply side vs deficit spending debate.
06 Nov 10
Originally posted by kmax87I think the people in charge now don't know their heads from holes in the ground.
From a few papers I've read, the basic thesis is that America as an Empire can do what she wants with her dollar and spend as she wants to because everyone else is holding dollars, and because of the oil/dollar fix and US dollar as International currency, there's nothing anyone can do about it.
In short whether America is fiscally responsible or not, her E ...[text shortened]... a sidebar we can also kinda of think of this as the supply side vs deficit spending debate.
They seem to treat money the same way some treat credit cards, as long as they
can go get another they can spend as much as they like. Some day the bills come
in and the credit is cut off, than what?
Kelly
06 Nov 10
1 edit
Originally posted by KellyJaywell some are saying because every non American country (esp China) holds vast amounts of dollars, America has become too big to fail. What with her military and all...
I think the people in charge now don't know their heads from holes in the ground.
They seem to treat money the same way some treat credit cards, as long as they
can go get another they can spend as much as they like. Some day the bills come
in and the credit is cut off, than what?
Kelly
06 Nov 10
1 edit
Originally posted by KazetNagorraSaddam wanted to open an oil bourse trading in Euros and suddenly the tanks weren't concerned about stopping at the Kuwaiti's border...
Yes, the limit to doing whatever you want is pissing off others so much they stop keeping dollars and start trading oil in another currency.
06 Nov 10
Originally posted by KellyJayI just loved it when Obama went over to Europe to promote his spending ideas. They just looked at him like he was an idiot.
I think the people in charge now don't know their heads from holes in the ground.
They seem to treat money the same way some treat credit cards, as long as they
can go get another they can spend as much as they like. Some day the bills come
in and the credit is cut off, than what?
Kelly