The Imperial Economy

in #economics14 days ago

Hey Jessimperialists

As I tend to these days is creep around peoples posts on the platform and engage with them, learn about their side of the world, and what it's like for others, I had a brief chat with @metzli. She mentioned something that even I in the deep dark of Africa am pretty familiar with, the saying:

If the US sneezes, the rest of the world catches a cold

I know many of us non-US based citizens may not believe it, realise it or acknowledge it because well there's only so much American exceptionalism we can take and only some much fo the Kardashians we can stomach. Still, it doesn't make it any less true.

The fact that friends from Europe and myself who have NEVER been to the US can name cities, places, cultural phenomenons, slang, companies, and more is a testament to how engrained their ideals have become in our global village.

While the TV shows, YouTube's and the Hollywoods tend to be the popular exports along with Micky D's the single greatest export us that of the almighty dollar.

imperialeconomy.png

When Americans feel rich we all get a piece

America's Gini coefficient, while not as bad as say, South Africa is still pretty and due to the purchasing power of the dollar and the nominal disparity. I read a stat the other day that US dollar Millionaires and Billionaires combined own 79% of the countries wealth and in the world its something like 50%. While I cannot vouch for the accuracy of these studies, I think we can agree the overall trend does skew this way or people wouldn't be rioting in the streets and needing bailouts.

As fewer Americans have a share of the wealth, only a few get to deploy it, meaning the fewer Americans with access to capital and spending the fewer leaves the country for us to use.

Dollar-denominated debt

The world runs on debt; it's not only the US borrowing up to their tits and beyond, countries all over the world mirror what the US does. Since we don't have the privilege of printing our own bank reserves, the rest need to borrow from various creditors and then pay it back with interest.

When US citizens don't spend, there's a dollar shortage, and the rest of the world needs to spend more of their currency to get dollars to pay back their international creditors.

The US might only be 25% of the worlds GDP, but the dollar settles 80% of the world's transactions. So 50% of all trade the counterparty of it is the dollar.

This provides the US with a massive leg up on any country, and why if they do something, they take the rest of us along for the ride.

The dollar desperation

Ask anyone in the tourism industry in South Africa, ask anyone in the call centre industry in the Philippines and India, ask any manufactures in China. Ask the UK why they told the EU to jog on and would prefer a sweetheart deal with the Yankees, the world needs dollars.

If it's not leaving the US at a certain speed, it disrupts so many people downstream you wouldn't even realise it how far-reaching the effects are of this co-dependence we have with our imperial economic overlords.

The dollar billy club

Lol, see what I did there? That was a good pun! Anyway, back to my point, the Dollar can also be used to maintain order and keep countries in line as well as punishing them for not doing what the US wants. Ask Iran, ask Venezuela, once the US cuts you off, you pretty much collapse. Many of us would rather submit then take that dollar billy club to the head.

Broad strokes

Yes, I am generalising not all American's are sitting around having grapes fed to them and being fan'd while chilling in a kimono or toga imported from somewhere, they're having a tough time of it too. I've spoken to many non-US peeps, and they don't understand this concept of free money because our governments can't afford things like this due to the way the economy is set up.

However, if the free money doesn't continue, it dries up downstream too, and the rest of us wither and die.

From the ground up

As long as nothing changes the US is the source of the world of liquidity, but it won't last forever, they can pick favourites; they can choose winners and losers in this game and negotiate sweetheart deals in the process.

The dollar is a privilege, but its also being abused abroad, This is why I feel it's so important for anyone in a developing nation like my own to hedge against this madness with Bitcoin.

Perhaps its time we do break up with the US, start seeing other people, and maybe they'll realise that we are cute, funny and worth the effort.

I probably won't ever get my country to agree even as they pass the US dollar debt to GDP ratio of 80% and beyond, but I can at lease secure my own balance sheet.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Even though I don't consider myself "American" (yes, I live in America, but the country is built upon my land and us Native Americans are treated like immigrants in many places) I can see the benefit of being born in this country.

I have been out of work since a little before the covid outbreak, and my family has not suffered financially because of my loss of work.

Just today, I was able to pick up lunches from my children's school. They provide 7 breakfasts, 7 lunches, and 7 snacks, per kid including milk and fruit.

I also live at the border between the US and Mexico and many times in my life have received a "raise" every time the peso collapses. A peso collapsing for us here a five minute drive means, cheap groceries, and a night out of town for literal pennies on the dollar.

It is very true that when the US hands money out (I have received various stimulus, and other types of checks throughout my lifetime) the money is sent downstream. Stimulus checks means people like me put money into the economy, directly into less fortunate people's hands, and even savings accounts, which helps the banks fund their mess.

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I read somewhere that there is parts of America that is for native Americans and not governed by some US laws and stuff is that still a thing? Is it better to stay in those areas or in like the normal states?

That’s crazy and I’m sure the Mexicans are all too happy to take your dollars! So if you buy stuff in Mexico you don’t pay like taxes on it to bring it in?

it’s pretty much the same here, and we pretty far from the US! South Africa will still ask you to exchange though because we need the dollars our US debt is insane and looks like that’s never getting paid back

But Like if you go to Tanzania and Kenya they’ll tell you don’t even bother exchanging into their local currency just pay in the dollar because their local currency is like 1 to 100 or 1000 lol

The exchange rate and stuff also makes US stuff super expensive like the iPhone let’s say it’s $1000 retail US here it will be $1800. The PS5 I think is $400 and here it’s $765 for that bass model the entry level

All about keeping the printing Ponzi going I’m pretty sure we’re going to see bazookas for money going off in the US to help finance the rest of the world!

I’ll just keep stacking my Satoshis in the mean time.

I think you mean "reservations" which is considered Native Land and yes, those exist. But... well, they are reservations, sometimes there are no grocery stores, running water, or trash service.

Taxes and Mexico depend on how much stuff you buy and you never get American Goods for cheaper, those always stay the same price. You can only really buy groceries, alcohol, and visit restaurants and cinemas and such. Right now the borders are closed and only US Citizens (and Permanent Residents) can move back and forth.

Mexican people I know would never buy electronics in Mexico, they just cross the border and buy it here, even if it means traveling. Many only buy clothes in the US as well. I know plenty of people who come in the summer and take the time to update their phones and computers and stuff then.

These are "well to do" Mexicans of course. Politicians, Doctors, Architects etc.

They don't really "love" getting our dollars in Tijuana, which is the first city over, as using dollars as currency is very, very common - it is more like they get annoyed if they see our US license plates and we bust out with the Pesos.

And the US printing out more and more dollars hurts us too - the stimulus check and the interest rates dropping helped my condo which I bought for 334,000 USD in July 2019 be worth 385,000 USD now. Condo is nice but not impressive 1225 sq feet, 2 bedrooms, laundry room, and community pool (which is only open on weekends during covid). This seems like a good thing, but, if you don't already own property, it makes it even more unattainable.

I will keep stacking satoshi's too. I think we will reach the point when 1 satoshi is worth 1 USD.

Wow that is horrible so they allow the land but ignore it in terms of civil services that’s such a dick move! I learned about it because I read about how people leverage the land to set up companies with the help of native Americans can bypass certain rules and regulations

lol yeah I get that I’m sure There’s bad blood between the 2 considering how Trump has been and the treatment of the border! I’m sure US peeps also would try to buy land there since their dollars can go further or set up companies if there’s a way to save or get more for money people are going to do it

Wow that’s 390k that would buy you a freaking palace here lol I can’t imagine how expensive life must be I don’t think I could survive there! I did have a freind who moved there to Texas he says it’s not too bad there though and his doing well

1 dollar a Sat would be insane I think that would mean 1 BTC would be like 10 million lol I’d be stinking rich I don’t know if that would mean I’d have buying power but hey it seems the best bet in town right now

It also helps to remember that "Native Americans" and "Mexicans" have the same blood lines. The colonizers came and divided us with a border.

And yeah - my family has a six figure income and things are still very very tight. Like, if all the kids outgrow their shoes at the same time, someone is wearing tight shoes for a few paychecks.

I read about that too like you had the First Nation peeps in Canada which the Brits tried to exterminate!

Then the tribes of America like the Cherokee and such

Then as you head south and the islands it was the Inca, aztechs, tainos and they all got basically taken out

Seems like a whole lost generation of people as “nationalism” took over now peoole think of themselves as say Cuban or Mexican because that history was obliterated

Pretty much the same thing happened here just it only ended in 1994 so still fresh in the memory

WTF 6 figures USD and it’s still tight my gosh, doesn’t this force people to want to leave for a cheaper quality of life let’s say I’m earning that why not live in a Latin American country, or The islands? Or is it not worth it?

It is too bad, because before the colonization, Canadian First Nations, and the Cherokee, and the Aztecs and everyone in between was all "Native American" with active trade routes and such.

And 1994, yes, still very very fresh, so yes, you know...

For my family specifically, if my husband tried to do his job anywhere but where he is right now, he would only be earning a percentage of what he earns. We would pay less in living costs but we would earn less job wise. The "smart" thing to aim for is earning the retirement based on six figures, and then move somewhere cheaper.

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Well im sure all those tribes weren't always friendly with one another like here we have so many tribes that made up South Africa alone and that's why we have 11 different languages here. Some got a long, some hated each other's guts, but now that's all a thing of the past and everyone sits around waiting for the government to tell them what to do and save them.

Autonomy is long gone, along with any critical thinking

That sounds like a plan, and if you had to go "somewhere cheaper" what would be a place you would look at? A different state or country?

Good description. That's why I think the USD will ride its last hurray to new heights in the years to come... until BTC will take over 🤠

At this point, I think you're right, they need to create cheap money so that others have breathing room to do the same, all the other currencies have to commit suicide first, before the USD finally falls

Hola chekohler,

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Thanks for allocating the 100% rewards of this publication to Hivepower.

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