Is the USD a ponzi scheme?
A ponzi scheme promises a high return, but is not backed by actual earnings. It gives a high return by taking the money from the later investors to pay the earlier investors. The USD now gives a high return. The US government does not collect sufficient taxes to pay the return. Instead, it prints more money and uses it to pay...
Borrowings by poor countries
Poor countries need to borrow money from rich countries to fund their infrastructure and economic development. They have to pay interest on the borrowings and return the capital at the end of the term. Ideally, the borrowings should be denominated in their local currency, but it is not accepted by the international lenders. They...
China will sell USD
President Xi has instructed the state banks to sell the USD. This is to help strengthen the yuan, which has dropped significantly against the USD. There is a longer term implication. When China sells the USD, many speculators will jump into the bandwagon and dump the USD. This may cause the USD to collapse. Remember, American...
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