no - i mean the only way is to exchange them for goods and services produced by America.
Demand for the $ is not primarily driven by its use by other countries as a reserve currency - Demand for the $ is driven by it is the only way you can pay your taxes in America - and if you don’t pay your taxes you go to jail.
A very simple why to look at it. You and 9 of your friends come to my house. We are sitting around and I pull out a small stack of my business cards and ask all of you if you will give me 25 push ups to get 1 card. And you all laugh. Then I point to the guys at all the doors to get out holding M16’s - and I tell you all that unless you give these guys 5 business cards in the next 2 hrs they will shoot you in the face. If you believe me - you will start doing push ups. And the friends who can’t do push ups will beg those who can to get them cards and they will give them something else. And maybe there is a push up king - who knocks out like 200 at a time and he has a fist full of cards - well you get the idea.
Cheeto jesus just blinked first. We know he’s making it up as he goes along. But can he wait just 24 hours before he changes his plan again? Or is the plan to constantly change the plan?
but thank goodness that he did - I can’t imagine the hardship these tariffs would impose on the EU - forced to make due with German cars, French wine and Italian fashion. Oh the horrors
70 countries are begged for a chance to thank “his Majesty” for rewarding them with his gracious and noble act to pause enforcing collecting duty on imports from US importers for 90 days. (If they can get an audience, that is)
Of course the flat tariffs of 10% will still be in force. (even on the penguins at Heard & McDonald Islands)
The funny part of USA health care is the US Gov spends more on health per person than many countries with national health.
Hence got little to do with tax and spend
The global demand for the dollar is driven by the fact everyone sells to the USA and gets paid in dollars so they have them.
You have to run a trade deficit to flood the world with your currency.
US has a debt market so you can get interest payments on your holding with a long history that you do get paid.
Then if you want to bail out the US has lots of stuff to buy.
Who can replace all those features?
It’s got to do with profit based healthcare. Private equity has taken over the health system. Administrative costs are 25% of healthcare costs. There is no transparency on pricing. There are no controls on drug prices. US citizens pay 2.5 times what other OECD countries pay. Small example. The popular new weight loss drug Ozempic one month cost in the US is $969, $155 in Canada, $122 in Denmark and $59 in Germany.
It is an unregulated system run amok while life expectancy is decreasing.
I guess tariffs will fix this though.
plus insurnace swallowing the other 74% just a bit left for actual healthcare.
One of my Uncles was a plastic surgeon in TX he told me insurance was based on 75% of turnover.
You need to separate internal and external debt for that argument.
External is to absorb all those dollars everyone has and allow them to earn interest.
