America Can’t Wait To Boot Russia Off The Dollar
Embrace the end of US Dollar hegemony. MMT fans rejoice.
In the last few years, we’ve been printing dollars like crazy. I’m not worried about it much. I think that eventually, the inflation we’re seeing now will settle down. Yves Smith at Naked Capitalism had this to say about Japan, another country that has been printing a lot of money, too:
Japan created money supply like a drunken sailor for the better part of two decades and still barely prevented deflation.
America’s debt to GDP ratio is 123%. Japan’s debt to GDP ratio is now 252%. They own $1 trillion of US debt. They’re still buying American companies and real estate. They’re still selling tons of cool stuff to Americans. We still buy their cars. Americans still visit Japan for its food, Buddhist temples, and to take a ride on their bullet trains.
What Yves Smith and almost every central banker knows (I’m not sure all of them know this), is that every nation creates money out of nothing. Every country creates money out of nothing and to give it value, they trade it with other countries for the stuff they want or can’t make. To get dollars, they trade their national currency for dollars and then buy what they want from America. When a nation holds a foreign currency in reserve, they give that…
