Great letter in The Courier Mail today from Bill Hayden walking us through the economic fundamentals of what it means to have the US$ as the preferred unit of international exchange.
So the US lives totally beyond its limits and gets into huge debt.
Next step is to print lots and lots and lots of US dollars and put them into global circulation as government bonds.
That causes high global inflation (this has happened before in the 19602-70s with President Lyndon Johnson funding the Vietnam War and his “Great Society” program of US welfare reforms without a tax hike). Other countries pay the cost of the US’s over-consumption.
The cost is painful domestic economic adjustments to chronic high global inflation.
The US is printing money for the world and in the process devaluing its own huge debts and transfering the cost to everyone else.
This is the ultimate globalism the ultimate un-resilience.
We’re here local tiny in The Grove but we can be badly affected and all our local businesses by the US greed and irresponsibility.
We badly need the world to be released from the US dollar as the international currency.