The US is a Hegemon in decline, it suffers from "Imperial Overstretch" (It spend too much wealth on Military, and much less on it´s infrastructure etc.), and now it wants to create World War 3, to use it´s military, so it´s military does not fade away like, what happened to the Sovjet Military Equipment...USA´s wealth is built upon Debt, the red bars below shows the debt in absolute terms, white the blue is Percent of GDP (The Total US production in a year). The US debt is now about 125% of GDP, and that means they owe about 35.108 Billion US Dollars to their lenders. Either they go Bankrupt, or Print money, which saves them from bankruptcy, but creates HYPER- INFLATION instead! How can the US service it´s debt of 125% of GDP, if their growth of their GDP is much lower than the yields on Tressuries (US interest payments on it´s Federal Loans, that make up about 124% of GDP - The US needs the debt to grow at a less pace in absolutte terms, than the income, to be able to service the debt). It´s like having an income of 100 USD, and a loan of 100 US Dollars, if the interest on the loan grows faster then the income, you become more indebted ceteris paribus. Inflation can eat away the debt, because if you have a loan on 100 USD, and it grows at 5% a year, but in income is P*Q (Price * quantity of good and services), then Debt/(GDP in current prices), will fall, as Either or both P and Q rise ceteris paribuss..the chart in the red bars shows, that the US debt rose in absolute terms, but Debt/GDP fell, which could be because growth in Price or quantity or both!
- So in short, we are likely to see Debt rise in Absolute Terms, but see Debt/GDP to go down, because of rising inflation! (Chart made by Mikkel Roland Egesberg).
(Chart made by Mikkel Roland Egesberg).
There seems to be a mistake in the movie clip below (at time 10.05) - the video says that countries that has debt in US dollars would face higher cost, should the US dollar fall/collapse! This is not true, if you have 5 euros and debt in 10 dollars, and they trade at 1:1, then a fall of USD with 50% depressiation, would make the 5 euros worth the 10 dollars, which they were not before, and it's now possible to repay the 10 USD-loan with just 5 euros! All countries with loans denominated in US Dollars should hope for a US Dollar crash, it would wipe away your US debt, making it worthless. HEP HEY! .....Those who lose money on a collapsing US Dollar are the ones that borrowed money to the USA and Americans, and did not get out in time before the US Dollar crashed, which it will do!".
DollarCrash.eu - By Mikkel Roland Egesberg: I will try post it here, when I have the stamina to do so, but this has all to do with the printing of money ,"QE2", and hyperinflation therefrom, plus the rising producer-prices abroad. This may only seem like an economic problem for the USA, but it goes far beyond, it political and has to do with the US's status as a superpower on this planet, where USA has been described at a hegemon, a superpower, moving from bipolarity with the Sovjet then into a unipolar World, but with USA losing the war of Afghanistan, this looks more and more like a multipolar World, with no clear superpower as a whole, but Countries/Federations/Companies/Organisations that do well with-in a certain area of expertice.
More money (Check below) chasing the same amount of goods and services, or less (because of COVID-19):
Based on these charts above, it looks like EuroDollar (included in M3, but not M1) has come back to the US's economy, notice the M1 (US dollars inside the US) has been lower than the M3, because of US dollars stored abroad (EuroDollars included in M3 Money supply), but now they are almost both at 20.000 billions, so it looks like all US dollars from abroad, has been shipped back to the US!
This is the once proud Motor-city home of the BIG-3: "GM (Government Motors), Chrysler, Ford":
Dollar-Crash?
By Mikkel Roland Egesberg: I have been saying this since pretty much year 2000/2001, the comming Dollar-crash, because of what I saw as what PAUL KENNEDY, a British historian (Yale), calls “imperial overstretch” in his book: “The Rise and Fall of the Great Powers”, short descriped how I understand it: it says that Great powers speends too much money on military abroad, that they live beyond means and forget their local economy...Since I wrote my report "EU - a superpower?", the EU has gained more members, but lost the UK, where as the US seems to be dragged into one war after another: Iraq, Afghanistan, Ukraine?, Israel?, Taiwan?, while China just seems to be betting on making investments on many sites of the planet, to secure resources for their economic input:
Is China doing a common currency with the BRICS? Or is it doing it alone? Or will the BRICS bet on this solution for them all, a Chineese Dollarization (Dollarization is about spreading the US Dollar down the throat on as many nations and companies as possible, so the USA can print as much currency as possible, ceteris paribus, while getting lower domestic inflation, and making the seigniorage work as an "inflation tax" on everybody using the US DOllar currency..in short the more nations/companies that use your currency, the less inflation will come from printing more money.. (This one is biased, M*V=P*Y, since it does not take into account, whether 1 person or 1 mio. persons or bigger units (economies) are using the curency! BY Mikkel Roland Egesberg.. if you print 1 trillion. USD and 321 Million Americans + world is using it, that's one thing, but if USA disintegrates e.g. because of a DollarCrash and only Florida is the only one using the currency, then one could expect: 1. a lower currecy (Supply vs. Demand)/ and 2. Higher inflation (import inflation, the currency is worth less, so if you buy a car from China, it will rise in price!, making the people of Florida have to pay even more, so that the US dollar citizens are taxed by an "inflation tax indirectly!), ceteris paribus)
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