Infamous Keynesian economist Paul Krugman, who adores government control and the enslavement of mankind through the monetary system, says not to worry. There’s “no risk” to the dollar unless the United States defaults on its loans.
So what’s the solution? The same one all Keynsians have: break more windows, cause more harm, interfere more, and definitely create more fiat currency out of thin air so the ruling class doesn’t have to stop spending money.
In an op-ed for the New York Times on Friday, Krugman pointed to growing fears that the dominance of the dollar could soon be challenged by rival currencies, such as China’s yuan, as the nation rises as a competing economic superpower.
Krugman claims there are three reasons why the greenback’s place as the world’s reserve currency is secure:
The dollar has incumbency on its side and is already a widely held reserve currency that was involved in 90% of all global transactions over the past decade, according to an estimate from the Bank of International Settlements. That means there would need to be “exceptional circumstances” for the dollar to be replaced as one of the world’s top currencies, Krugman said.
US Financial markets are open, though China’s yuan is often restricted by the nation’s tight capital controls. In practice, that makes the dollar more liquid than the yuan, and therefore more desired.
The US legal system offers more protection for holders of the dollar, Krugman said. “Unless you’re a dictator planning to commit major war crimes, you needn’t fear that the US government will impound your assets; in China, your assets may be at risk if you say something the strongman in charge doesn’t like,” he added. -Business Insider
Because the focus of the U.S. has always been stopping dictators, not creating more of them, and complete domination of the slave class.
Additionally, Krugman stated that many of the “fears” about the U.S. dollar’s status stemmed from the fact that dollar dominance is naturally prone to “conspiracy theories and catastrophic thinking.”
Well, that’s not the first time the narrative questioners have been called “conspiracy theorists” and it won’t be the last.
“In sum, there’s no reason to be terrified of the consequences if the dollar should lose its special international status. But that said, it’s really hard to see that happening in the first place,” Krugman said.
The only thing that could “harm” the dollar is the ruling class not raising the debt ceiling, but those sociopaths like spending money. The only reason they’d avoid raising the debt ceiling is if it’ll crash the economy and harm the slave class. “In sum, there’s no reason to be terrified of the consequences if the dollar should lose its special international status. But that said, it’s really hard to see that happening in the first place,” Krugman said.