Message from @Arnold Jacobs is legend
Discord ID: 788278663711555634
and?
It all goes back go trade, and faith in the dollar as i said before
@Arnold Jacobs is legend yes the faith in the dollar, you are reffeirng to the dollar index. like i said we have had times of credit expansion and a increase in delta dollar index
The us can maintain large deficits as long as other countries support it and they do due to the dollar being the worlds reserve currency
wow
holy shit
circullar argument
i will say this slow
Its not circular its cause and effect
As i said the us is heavily reliant on foreign trade for manufacturing
40%
70% of the economy is products
They need manufacturing
THE US DOES NOT RELY ON OTHER COUNTRIES OWNING US TREASURYS TO FUND PROGRAMS. I HAVE LINKED A REPORT/STUDY ON THIS AT THIS POINT YOU HAVE NO IDEA WHAT YOU ARE TALKING ABOUT. THERE IS A REASON WHY PETTER SCIFF GOT FUCKING GANG RAPED IN 2008 BECAUSE HE SHORTED THE DOLLAR AND THINKS THE GOLD STANDARD IS
It all goes back to deficits only work when countries have faith in the production
holy shit
i cant
wow
Im starting to wonder why other servers banned you lol
yes you are talking about the dollar index
i did
you are saying the dollar index will collapse because we are expanding credit at a massive rate
No you didnt im talking about cause and effect with manufacturing
Thats not all im saying
Im saying that collapse will have devastating effects on trade
Which will have devastating effects on manufacturing
Which will have devastating effects on the consumer products
Which is 70% of the economy
All those jobs will vanish
A country without production or goods is dead or effectively bank rupt
Again the same thing happened to the weinmar republic
in order for there to be a collapse of manufacturing there would be a collapse of the dollar index. Like i already said there is no direct 1:1 causation of large deficits a decrease in the dollar index. Again i ask why can japan have a almost double deficit ratio then us but have lower inflation. As for manufacturing(which is real recources) i already stated i agree. that is the constraint of the deficit. MMT agrees
And they only remedied it by hiking taxes and cutting expenses
And its an ideal example as the weinmar republic was burdened with foreign debt from the war
holy shit
I AGREE REAL RECOURCES IS A CONSTRAINT
Quit cursing and address the point
Finally were getting somewhere lol
And there you go
Now quit spamming