Global debt aka bond market is on brink of collapse. It's a worldwide debt-based economic model.
In a system entirely based and founded upon debt, debt note fiat currency from central banks, and Financialized speculative debt instruments (derivatives, CDSs etc.) the only thing 'backing' it all is global confidence in the debt (bond) market.
Additionally, the entire global system relies on a single default reserve debt note fiat currency denomination : USD (for both currency transactions and bonds aka treasuries)
Every single note of fiat currency 'printed' into existence, no matter the denomination, also requires that nation's sovereign treasury to issue a corresponding bond that must be sold on the global bond market. The debt market
Somebody/something *must* purchase all that debt.
Right now, nobody wants to or is doing so
https://archive.4plebs.org/pol/thread/500310690
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It's not going to happen.
People keep mentioning 'muh Weimar' (just like they do 'muh fiat' or 'muh sound money') but the USD as a currency unit doesn't solely or exclusively comport with its nation of origin, nor the economic fate of that nation alone.
In other words: the post-1980s global reserve currency era of USD and treasuries, it is the *default* worldwide debt note fiat currency unit that more than 140 nations are dependent on, for a myriad of things incluidng trade and sovereign debt payments which must be transacted paid and contracted in USD denomination
There's a theory from 30,000 feet view of this called the Dollar Milkshake (invented by Brent Johnson) look it up
Global system is a Debt-Based Economic Model
founded on and supplied by one predominant reserve currency (took several decades post-1944 to become this) denomination, the USD
the dollar is *everyone's* problem
When the global debt aka bond market implodes, so goes it all
https://archive.4plebs.org/pol/thread/500310690
People keep mentioning 'muh Weimar' (just like they do 'muh fiat' or 'muh sound money') but the USD as a currency unit doesn't solely or exclusively comport with its nation of origin, nor the economic fate of that nation alone.
In other words: the post-1980s global reserve currency era of USD and treasuries, it is the *default* worldwide debt note fiat currency unit that more than 140 nations are dependent on, for a myriad of things incluidng trade and sovereign debt payments which must be transacted paid and contracted in USD denomination
There's a theory from 30,000 feet view of this called the Dollar Milkshake (invented by Brent Johnson) look it up
Global system is a Debt-Based Economic Model
founded on and supplied by one predominant reserve currency (took several decades post-1944 to become this) denomination, the USD
the dollar is *everyone's* problem
When the global debt aka bond market implodes, so goes it all
https://archive.4plebs.org/pol/thread/500310690
>>515011652
>"technologically illiterate"
I'm an engineer and scientist (yeah both don't ask how or why). 'Tech' is the greatest misnomer word of the 21st century. None of it/that industry is "tech" it would be better to term the bulk of it telecom and internet-server networking. (Some of it, *obviously* consists of robotics, computation/semiconductors, electricity transmission, battery storage, AI etc.)
>USD global reserve
Yes correct that is the foundation of the global Debt-Based Economic Model.
This is the present problem *globally* not merely with the U.S. Federal Reserve itself, because the entire world depends on USD as the default reserve: not only the dollar for transactions but also U.S. treasuries that are denominated in USD. Whole system is founded and dependent upon the confidence the dollar worldwide.
Global debt market today 2025 is more volatile and unstable than it has been in half a century.
When the global debt (bond) market goes, so goes it all
Right now, the administration's supply side plan
is to get the U.S. annual GDP growth rate from its current anemic ~2 percent up to around 4 or 5 percent, which could ? if successful in the next 12 months or so allow the U.S. federal discretionary spending to avoid inundation by Interest Payments >>515010589
I'm highly skeptical that the global debt market lasts until the end of 2025, despite the happy talk (emanating from the administration rn)
>"Economic gravity"
Shut the fuck up, Midwit.
>"technologically illiterate"
I'm an engineer and scientist (yeah both don't ask how or why). 'Tech' is the greatest misnomer word of the 21st century. None of it/that industry is "tech" it would be better to term the bulk of it telecom and internet-server networking. (Some of it, *obviously* consists of robotics, computation/semiconductors, electricity transmission, battery storage, AI etc.)
>USD global reserve
Yes correct that is the foundation of the global Debt-Based Economic Model.
This is the present problem *globally* not merely with the U.S. Federal Reserve itself, because the entire world depends on USD as the default reserve: not only the dollar for transactions but also U.S. treasuries that are denominated in USD. Whole system is founded and dependent upon the confidence the dollar worldwide.
Global debt market today 2025 is more volatile and unstable than it has been in half a century.
When the global debt (bond) market goes, so goes it all
Right now, the administration's supply side plan
is to get the U.S. annual GDP growth rate from its current anemic ~2 percent up to around 4 or 5 percent, which could ? if successful in the next 12 months or so allow the U.S. federal discretionary spending to avoid inundation by Interest Payments >>515010589
I'm highly skeptical that the global debt market lasts until the end of 2025, despite the happy talk (emanating from the administration rn)
>"Economic gravity"
Shut the fuck up, Midwit.
>>513597189
>trap that is the dollar
Correct, but that's (everyone personally-individually, or for example BRICS national-cabal-wise) not going stop the collapse of the global bond market.
Entire world is dependent on USD denomination as default reserve.
>trap that is the dollar
Correct, but that's (everyone personally-individually, or for example BRICS national-cabal-wise) not going stop the collapse of the global bond market.
Entire world is dependent on USD denomination as default reserve.
>OP 25 pbtid "dollar"
Global debt market is on brink of collapse.
Nobody wants to buy the debt
https://archive.4plebs.org/pol/thread/500310690
USD / treasuries are the world's global default reserve, 95 percent of all assets and transactions
Global debt market is on brink of collapse.
Nobody wants to buy the debt
https://archive.4plebs.org/pol/thread/500310690
USD / treasuries are the world's global default reserve, 95 percent of all assets and transactions
>>508286509
Is the yuan the world's default reserve currency denomination?
Read the archive.4plebs topic posted above
It's no solely about 'demise of the dollar' (<--something taking its place) or 'muh BRICS', it is about the global liquidity drying up and the total dependence of current system on USD which can produce a near-instantaneous credit freeze
>as would have occurred in Aug-Sept 2019 without almost $1T in bailouts (followed soon after by covid global lockdown and $12T more in liquidity to the dried-up system)
>as would have occurred in 2007-8 without those bailouts
Main problem rn, is that compared to 2019 or 2008 the total debt has more than tripled in magnitude and (as posted upthread) governments are far outspending themselves just to pay interest.
USD is the global default reserve currency, therefore confidence in that denomination and also U.S. treasuries is dependent upon the world's perceived confidence in U.S. government solvency.
That is why the debt (bond) market has a sales problem : Nobody wants to buy the debt
nothing to be enthusiastic about U.S. treasuries (or the USD), it's meh
Is the yuan the world's default reserve currency denomination?
Read the archive.4plebs topic posted above
It's no solely about 'demise of the dollar' (<--something taking its place) or 'muh BRICS', it is about the global liquidity drying up and the total dependence of current system on USD which can produce a near-instantaneous credit freeze
>as would have occurred in Aug-Sept 2019 without almost $1T in bailouts (followed soon after by covid global lockdown and $12T more in liquidity to the dried-up system)
>as would have occurred in 2007-8 without those bailouts
Main problem rn, is that compared to 2019 or 2008 the total debt has more than tripled in magnitude and (as posted upthread) governments are far outspending themselves just to pay interest.
USD is the global default reserve currency, therefore confidence in that denomination and also U.S. treasuries is dependent upon the world's perceived confidence in U.S. government solvency.
That is why the debt (bond) market has a sales problem : Nobody wants to buy the debt
nothing to be enthusiastic about U.S. treasuries (or the USD), it's meh