alt Hacker NewsIt's not pure symbolism. The most effective way to reduce the global threat the US is appearing to pose more as of late, is to hit the dollar. The US economy is in a very precarious state, tensions along political ideology lines are high, and it would not take much more than a worsening of economic conditions plus a catalyst event to kick off armed unrest within the country. A new civil war that drives the US to fragment into several independent regions over the course of the next ~five years would kind of be the best scenario from a global perspective.
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I’m curious when people make comments like this, do they actually live in the US and believe this or has the media environment gotten so bad in Europe+ that people have no clue what’s real or not?
> A new civil war that drives the US to fragment into several independent regions over the course of the next ~five years would kind of be the best scenario from a global perspective.
The US isn't going to passively give up its hold on the world order. You don't think this would trigger a world war?
And if / when the US does topple (whether in 10 years or in 1000 years), at the moment it looks like the only viable next leaders in the world order are autocratic dictatorships.
How is this a best scenario from a global perspective?
> The most effective way to reduce the global threat the US is appearing to pose more as of late, is to hit the dollar.
Which is exactly what this administration is doing. What do you expect to happen when the POTUS and DOJ overtly pressure the sitting Chairman of the Federal Reserve to cut Fed Funds rates and print more money, thus creating more inflation in direct violation of a crystal-clear Congressional mandate? Do you think that's good for the U.S. as a destination for safe assets, or a "reserve currency"?
How would a USA civil be the best scenario globally? Who knows what wars that would trigger globally
> The US economy is in a very precarious state, tensions along political ideology lines are high, and it would not take much more than a worsening of economic conditions plus a catalyst event to kick off armed unrest within the country.
Do you remember the situation that precipitated the Nazi takeover of Germany? Wasn't it hyperinflation and economic collapse? And you think it would be a good idea to push the US further in that direction?
You'll get worse, not better.
> A new civil war that drives the US to fragment into several independent regions over the course of the next ~five years would kind of be the best scenario from a global perspective.
Are you serious? That's an utterly insane idea. The best scenario from a global perspective is the US regains its stability. Europe is in no position to defend itself militarily, it relies on US support via NATO. I believe similar is true of Japan and other countries. A US civil war would only help Russia and China (Russia would gobble up Ukraine and who knows what else, China would take Taiwan and dominate/subjugate the rest of Asia, like Japan, in some fashion that non-Chinese nations wouldn't be happy with).
Also US polarization isn't regional (e.g. a big part is urban/rural). There's no "fragmentation into independent regions" that would really solve the problem.
No, it's pure symbolism. Countries don't purchase US treasuries to be charitable to the US. This hurts Denmark just as much as it hurts the US. And in relative terms, Denmark is going to feel the pain from this way more than the US since the US economy is 70x bigger than Denmark's.
> The most effective way to reduce the global threat the US is appearing to pose more as of late, is to hit the dollar.
I really don't understand why people keep saying that despite the fact that Stephen Miran, Trump economic advisor, made it an explicit goal to devalue the dollar:
> The root of the economic imbalances lies in persistent dollar overvaluation that prevents the balancing of international trade
https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...
They want the dollar's value to go down. You don't make someone change course by doing what they want as a punishment.
> Danish pension fund AkademikerPension said on Tuesday it would sell off its holding of U.S. Treasuries, worth some $100 million,
> AkademikerPension has in total 164 billion Danish crowns ($25.74 billion)
So they are moving about 0.4% of their investment.
Not pure symbolism, but $100 million is really nothing when we're talking about US treasuries. In the past decade, China has reduced their holding by about $600B.