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Joined 2 months ago
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Cake day: February 27th, 2025

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  • Generally speaking, the problem when you don’t repay your debt is not that other countries invade you, but that you don’t get any new loans.

    If America can get a new currency, default on her debt, and at the same time manage a balanced budget, all is good. Otherwise, who’s going to come up with the loans required?


  • I fully agree with you on the current liquidity issues, and certainly on the loss of manufacturing competitiveness that comes with having reserve currency status.

    My main economic concern with Trump’s policies is simply that “advanced” economies will never really be able to compete in the manufacturing field again. Trump should know - he is surrounded by the richest men in the world, and the only one that does any manufacturing at all, and only as a side gig is Musk. All the other ones only do digital and finance/investment.

    I agree that Europe probably doesn’t want to get into that space at the moment. I am afraid Europe is pushed into doing a lot of things right now it didn’t and doesn’t want to do. The decision point would probably come if Trump’s tariffs are really just paused and start being enacted. Then Europe will have to massively increase its trade with other nations, which will also have to do the same thing, and then using USD becomes incredibly impractical, especially with the wild swings it is going to have if tariffs are re-enacted.

    And, again, totally agreed. This will require a lot of changes, and they will be painful. It just feels like there aren’t a whole lot of alternatives.





  • I think that’s the key. We attribute to them special qualities because we like to think in terms of cause and effect. But they all seem to have just been there at the right time with the right people and the right thing.

    They show us there is nothing special about them every time they try to do something new and miserably fail. Think the money Meta spent on VR, or the way Musk alienated users and advertisers on Twitter.

    We are basically beholden to lottery winners.