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by mrjin 976 days ago
I'm wondering how much longer it can play such game. If current trend does not changes, its revenue will soon unable to cover the interests.
2 comments

Revenue hasn't covered costs in decades.

If the BRICS overthrow the U.S. dollar, there will be a come-to-Beevis moment in the U.S.

> If the BRICS overthrow the U.S. dollar, there will be a come-to-Beevis moment in the U.S.

Yeah:

> Pretty straightforward really. You combine Brazil's history of monetary stability, with Russia's respect for property rights, India's domestic tranquility, China's financial transparency, and South Africa's investment opportunities - and hey presto, you've got a new global money

* https://twitter.com/davidfrum/status/1665053372402081792

How anyone lump China and India, not exactly the best of friends, together is beyond me.

Why would anyone care what lying David Frum says about BRICS?
> If the BRICS overthrow the U.S. dollar

imo there is zero chance of BRICS ever amounting to anything more than a photo-op every couple of years.

Will there?

I think what's behind all this reckless spending is the fact that the US armed forces are the biggest and most powerful in the world. While they have the most guns and are prepared to use them, it's not going to be easy to change this world order.

Like, who's going to stand over the 7ft 300lb thug?

The US wont just sit around while their position is eroded,at least in my opinion.

We're also relatively good allies and I think this goes a long way too.

If China had a 10x more powerful military and Navy than the USA, had experience in combat and was willing to use it. It wouldn't take long for the Yuan to win.

China does not want the yuan to “win.”

The Chinese state views control over capital flows as more important than the prestige of reserve currency. They can, and have, clamped down significantly on foreign outflows when they deem it necessary.

You need a currency that buys stuff and that other people want to have - military might alone isn't sufficient at all. The ruble was never a great currency, no matter how mighty the USSR was, for example.
Inflation fixes that
not if interest rates go up at the same rate, or higher than inflation
I mean historically