The author posted a question in Business, Finance
Don't you think the US dollar exchange rate is like a major pyramid scheme around the world? Almost unsecured by anything? and got a better answer
Response from
Don't you think so?
Response from 0[+++++]
I don't think so.
I don't think so.
Response from 0[+++++]
Don't who is everyone?: The vast majority of dollar users are US residents. There is a VERY small few percent of the dollar supply walking around overseas on the order of $800 billion while M2 in the US is close to 14 trillion. And U.S. residents need dollars at least because they pay taxes with them. The U.S. federal government gets more than three trillion in tax revenue a year plus the states and local governments - they have their own separate tax system from the federal one. The value of U.S. housing alone as of the end of last year was just under $30 trillion.
Don't who is everyone?: The vast majority of dollar users are US residents. There is a VERY small few percent of the dollar supply walking around overseas on the order of $800 billion while M2 in the US is close to 14 trillion. And U.S. residents need dollars at least because they pay taxes with them. The U.S. federal government gets more than three trillion in tax revenue a year plus the states and local governments - they have their own separate tax system from the federal one. The value of U.S. housing alone as of the end of last year was just under $30 trillion.
Response from 0[+++++]
Secured by 1-2 economies in the world.
Secured by 1-2 economies in the world.
Response from 0[+++++]
You can't compare MMM to a dollar. That's what you need to understand economics for. So anyone can tell the difference between an MMM and a dollar. Imagine, less dollars being printed, after that the dollar will strengthen even more. And MMM will collapse because of these actions. You have the guts to write that the dollar is almost unsecured. Loans are not issued without collateral. All money has collateral. If someone were to give up the dollar now, they would be hurting themselves. So if there is a decline of the dollar, but it is a gradual process. There will be no sudden collapse of the dollar. If everyone rushes to buy goods for savings, they may also depreciate in the future.
You can't compare MMM to a dollar. That's what you need to understand economics for. So anyone can tell the difference between an MMM and a dollar. Imagine, less dollars being printed, after that the dollar will strengthen even more. And MMM will collapse because of these actions. You have the guts to write that the dollar is almost unsecured. Loans are not issued without collateral. All money has collateral. If someone were to give up the dollar now, they would be hurting themselves. So if there is a decline of the dollar, but it is a gradual process. There will be no sudden collapse of the dollar. If everyone rushes to buy goods for savings, they may also depreciate in the future.