Topic: Counter to "Why Bitcoin is dropping ...buying." AMA format / doomsday debunked - page 7. (Read 5604 times)

Not really. The USD demand has little to do with oil and more to do with products we export and buy. If you sell oil in usd, the person you bought it from sells usd and you buy usd, so the net is zero demand for usd. The country USA doesn't control oil supply except for oil we make in USA but even that is controlled by thousands of individual firms. So it doesn't help usd demand and is not controlled by the US. If anything marginal supply is controlled by opec, which the US is not a part of.

My assumption....

Because oil is the only backing for the USD.
If people buy oil in any other currency the USA gets screwed over since there is no more demand in USD.
Having control over the oil supply effectively gives control over every country requiring it.

Power == Money == Power

Try buying foreign products with pieces of toiletpaper.....

I'm not familiar with any countries that this happened to? Countries are free to transact in any fx they like. They choose the USD because of reasons posted in my previous post. Mainly, it's stable and widely accepted.

Alright, why does any country that attempts to sell oil for anything but USD get bombed back into the stone age?

Judging by your name I assume you fall into the "inflation is just around the corner and hyper-inflation is just around that corner so USD is worth nothing" crowd.  Amirite?

Surprisingly logical replies so far (except for the person claiming something insane about me silencing people).


Curious to hear why you think that is?  The truth is that a local currency is almost always dependent on inflation to keep its value - that is why people would not accept UST at a low rate, they will want higher rates to justify the higher inflation - and the US does NOT have an inflation problem, nor does most of the developed world.  In fact, it is quite the opposite.  This is probably the most important issue here that people are saying will happen - a hyper-inflationary spiral which kills the USD.  I think we should talk more about this because it is pretty important!

As long as the rest of the world believes that our government can tax citizens and pay interest on its debt, the international community will have a demand for dollars.  Demand for dollars is not only buying and selling of goods - most of the time it is transfer of US Treasurys, which act as cash equivalents.  So if people think they will get paid back on their UST, they will have no problem dealing with the US and holding our debt.  And this payments, we agree, will always be made.

In the past countries "blow up their FX" because their economy relies too much on one product - like oil and Russia or agriculture and Argentina in the mid 1900s or Venezuela today - or rely too much on foreign capital flows to operate - like many countries during the Asian Currency Crisis of 1997/1998.  The US does not have this problem.  If you think the USD will collapse, I assume you think that many many other countries will have gone down first, since the USD is the most stable, liquid and widely accepted form of payment in the world (again payments are usually in UST, not dollars for candy bars, on aggregate).

LOL. Best thread ever!

The problem with the Dollar - is trust. And this is why OP is apperaing here. Bitcoin is all about trust. The economy is just another playground, which will (always) build around trust. Like it did with the Dollar for the last 100 years.

Edit: I might add, that it's also about the trust in a political system that has seen its best days. When have you see the U.S. standing up for humanity and civic liberty the last time?

So? We've got people here who believe in perpetual motion machines; that the world is being controlled by Jews, lizards, and/or Jewish lizards; that aliens walk among us; that humans can survive without food; and IPU knows what other nonsense. The Speculation forum in particular attracts many people who don't understand how financials markets work or even basic economics for that matter. These people are immune to basic logic, and I doubt you'll be able to convince them of anything, though you're of course welcome to try.

I didn't even bother reading the thread you're referring to, as the whole premise is ridiculous on its face and really not worth responding to at all.

If you think that'll help.

I can't speak for the rest of the forum, but I don't think any of those things, except perhaps for the implosion of the dollar. Though I don't think it's going to happen anytime soon, of course, or that it'll be so sudden that nothing can be done about it when it happens.

This is Economics 101. Tell us something we don't already know.

You realize they're all teenagers or twenty somethings in here don't you?  Smarmy arrogant kids.  I used to have your attitude trying to help folks get better understanding of economics and markets.  But now I just entertain myself watching them suffer

Translation: "I see the spreading of information against the banking oligarchy, and I came here to dispel of these facts so that we can continue to enslave humanity.  Don't listen to these bitcoin/liberty mumo-jumbos.  Give us your money and your freedom."

For sure, USA will never go bankrupt because its debt is denominated in USD and they can issue that currency in unlimited amounts.

The rest of the world goes bankrupt instead

Hi everyone.

I see the spreading of a lot of misinformation in the thread referenced above and in these forums - info that is either based on incorrect premises or a misunderstanding about how the financial system works in the United States.  I work in the financial investment industry and want to clear things up so that people do not scare you into buying into their own agenda.  So what I want to do is debunk some of these misconceptions with facts, not opinions or theories, about how our financial system works in the United States.

So please, ask me anything or tell me why you think the US is "going bankrupt" or the Federal Reserve "prints money" or fiat is dead or petrodollar or the implosion of the dollar, and I will respond.  To start things out I can start by saying that the United States is not bankrupt or anything close to it.  A nation which can print its own currency, tax output and has no foreign-denominated debt can never go bankrupt.  The national debt will never be paid down nor does it need to be and this is not a problem.  The government could issue only very short government debt and essentially controls the interest it pays on its own debt, if it were to ever become a problem.

Anyhow, let's hear your doomsday scenarios!