Money today is created on the computer. Any strong and self-sufficient nation or regional grouping can create its own money. They no longer need to base their money and debt on silver and gold bullion.
So I think that Trump is living in a past world – especially given the right-wing Republican “hard money” crowd pining for the old gold-exchange standard, insisting that government money creation is inherently inflationary (as if bank credit is not at all). I guess that’s what makes him a genius: He’s able to hold two opposing views at the same time, each with its own logic that contradicts his other view.
Something has to give. And this will affect not only U.S. financial markets, but the balance of payments as foreign capital flees to safety by leaving the United States. That would be the first time in more than a century when this flight to safety is away from the United States, not to it.
The U.S. economy has been re-designed to inflate financial gains, even while de-industrializing by outsourcing its labor force. So what seemed to be U.S. industrial has been replaced by financialized de-industrialization.
That means that the drive by BRICS to defend themselves collectively against U.S. hegemony implies really a fundamental broad and split in what is a desirable way to organize economies. opposing finance capitalism as predatory. Esp. as Trump is trying to push it, by imposing sanctions against countries moving away from dollars.
