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Subject:  Re: OT govt. debt Date:  5/26/2019  9:51 AM
Author:  Rayvt Number:  274187 of 277817

Just how long do you suppose the world will use the US dollar as the reserve currency?

As long as the US is the strongest economy in the world.

Right now, Russia, China, and perhaps India, are dumping US treasury bonds and putting their reserves into physical gold

"Dumping" US treasury bonds for physical gold means getting rid of a thing that pays a return for something that pays no return and is burdensome to hold. And those T-bills have to be held by _somebody_. An asset doesn't care who holds it. Makes no difference to the US or the world economy if a Treasury bond is held by China or by Lower Slobovia.

And physical gold/silver has the same basic characteristic as any other thing we call money. It is only "money" to the extent that somebody will exchange a useable asset for it (oil, food, microwave oven, etc.)

I came across an interesting quote recently: “power resides where men believe it resides.” Same applies to money. A thing is money when people believe it is money.

US Treasuries will be bought by people around the world as long as people believe it is the safest place for their money. How many people are rushing to buy China Treasury bonds? (Does China even have bonds?)

Russia ... China

Really? Who believes anything that China reports about their economy? Fools?
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