Rugoz wrote:Economic growth slowed down everywhere in the industrialized world. The gold standard is deflationary in a growing economy, and thus generally a dumb idea. The dollar isn't backed by oil or any commodity.
The Triffin dilemma is true in the sense that a higher demand for safe US assets (reserves held by foreign central banks are primarily treasuries) reduces interest rates and makes debt less costly, but the US could easily save more and run an account surplus. It's not like the US would run out of debt to sell.
The saving rate is directly related to the trade deficit. It's basic accounting. Countries that save more consume less imported goods and services. The excess savings, i.e. the savings that aren't invested domestically, are invested abroad. Equalizing returns etc.
AFAIK it's impossible to explain the large differences in saving rates across countries without "culture". There's also direct evidence, such as immigrants retaining the consumption/saving habits of their country of origin for several generations.
Your idea of US influence around the world is comical, but of course common among your kind.
The fact that the entire process was utterly corrupt, which obviously was not recommended by the IMF at any point, proves that the Russian government did their own thing (among other advice that was not followed).
It's been slowing down because of late capitalism, with a focus on service industries as they outsource. That's why even China has been outsourcing for at least a decade, with more of its manufacturing consisting of assembly.
The Triffin dilemma leads to that plus exports becoming too expensive for the world while imports become too easy. That's why not only did the trade deficits become chronic they even grew larger each time, together with debt.
When you have consumer spending plus incredible levels of military spending to keep that dollar propped up, then you'll end up with increasing debt, which is exactly what happened thanks to voodoo economics.
https://seekingalpha.com/article/164163 ... rs-of-debt
Basic accounting, my foot. It has reached a point where they have to borrow more just to cover part of the interest rate from previous debt.
"Culture". LOL. Now, you're putting it in quotation marks. That way, you can change its meaning each time to make up for your "basic accounting" storyline. You remind me of that line from one of Johst's plays about guns and culture.
Given that, I think the only one comical in this discussion is you. In your goofy Reaganite world, it's all the "evil empire's" fault. You're like the twin of Dr. Evil. LOL.
BTW, I wasn't referring to corruption. If any, what the U.S. did is expected.
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