It’s very obviously shrinking in the long run given that now there’s a whole alternate world economy forming around BRICS
If US debt is growing at an ever faster past, that logically demands that us securities are being sold at an ever higher pace…
China is one of the largest buyers of US securities. Having a large foreign exchange reserve is beneficial for export economics whose government mainly relies on vat taxes for revenue.
hence why sanctions against Russia failed in the first place. So, it’s pretty clear that Russia would have no problem backing their security with tangible stuff that countries need.
Sanctions failed because oil is still 80$ a barrel and the vast majority of governments are run by people wanting to line pockets.
It’s an example of a tangible asset Russia can back securities with
The whole point of buying securities is that they are liquid assets that can be traded as or like currency.
Borrowing money in a currency you yourself issue is a nonsensical concept.
It’s not really a radical concept…? Especially considering that every major economy does some form of debt monetization.
There is a difference between domestic market and international trade. The value of the currency domestically is not directly related to its trade value.
I think “Not only that, but currency being valued lower internationally actually plays in favor of the government in a country that’s primarily an exporter of goods.” Is kinda proof that there is a direct correlation. In a globalized economy domestic and international markets are inherently intertwined.
These collapses all directly relate to the decline in material conditions.
You don’t say…so what is causing the decline in material conditions?
Meanwhile, the dissolution of USSR was primarily political in nature.
Isn’t how we allocate productive forces always political in nature?
The economy of USSR was certainly in a far better shape than US is today where millions of people are currently starving, unable to get healthcare, or even afford housing.
You really think that the current US economy is doing worse than the Soviet Union in the late 80’s and early 90’s?
Food shortages were rampant in the 90s, even in Moscow. If we were utilizing the same metrics as America for “starving” (aka food insecurity) then the majority of the Soviet Union would have been “starving”.
Healthcare by the late 80s in the USSR had fallen tremendously, mostly because their transition to prioritizing outpatient care, which caused their hospital system started falling apart.
As far as housing… Yeah, America is always gonna win that particular shitty trophy. Though that’s not exactly because of an inability of production, moreso an inability to empathize with the working class.
I’m not claiming that America has a great economy, or that capitalism is the best economic system to distribute resources. Just that certain economic principals are relevant wether you have a command economy or not. China is a socialist state and they still back their debt with securities, because not doing so leads to currency instabilities in both the domestic and international sectors of the economy.
Collapses aren’t caused by loss of production capacity, they’re caused by misallocation of resources that leads to an unacceptable decline in the standard of living for the majority.
Oh, like 39% of the federal budget going to the military? You don’t think that might catch up with them at some point?