What should the US do about Mexico's BRICS application?

Gaius · 2023-05-21T15:07:47.946Z

Rurudyne:

Don’t forget to pay before you eat. Money will be worth less in a half hour.

So little has been written on what happens after hyper-inflation that it is difficult to know how VZ can get out of this. Their interest rates are currently in the 55-60%.

But basically
1.) It is no longer a functioning currency. Was has been written about inflation applies to actual currency.
2) 55-60% interest may not do the trick. A quick search reveals these as purportedly their most recent inflation rates. (To bring down high inflation interest must be > inflation.)

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zantax · 2023-05-21T15:50:04.163Z

Generally you have to start over with a new currency, odds are they go with a digital currency to keep everyone in line. Then they can dictate pricing as well as purchases.

Paul_Thomson · 2023-05-21T18:38:18.840Z

Rurudyne:

It would be interesting to know where “cheese eating” as a complaint or insult really came from.

https://www.quora.com/Cheese-eating-surrender-monkeys-was-a-phrase-meant-to-imply-French-cowardice-But-whats-cowardly-about-eating-cheese-A-ripe-Époisse-de-Bourgogne-tastes-delicious-but-if-you-didnt-know-that-it-would-take-courage-to-try-it

“Cheese-eating surrender monkeys” was a line from an episode of the popular and long-running animated series The Simpsons. It was uttered by the chronically ill-tempered school janitor Groundskeeper Willie, who is drawn as a broad stereotype of a Scotsman. As with many other memorable and outre lines from the series, it quickly entered the popular culture, often used as a self-parodying insult. It is most often used when the speaker wants to mock themselves or their statement as coming from an over-the-top misanthrope or crank. It is never intended to be taken literally.”

Bosun · 2023-05-21T18:48:33.827Z

And Saudi Arabia

Modern Diplomacy – 21 May 23

BRICS Membership: A Game-Changer for Saudi Arabia’s Economy?

As Saudi Arabia prepares to potentially join the BRICS, there is much to consider in terms of the impact on the country’s economy. While some may view this as a simple geopolitical move, it could have significant economic implications for the region...

Est. reading time: 3 minutes

BRICS is real and growing membership.

Bosun · 2023-05-21T19:21:45.152Z

A little more about BRICS. Normally Western media and our biden state department/us economic advisors stay away from BRICS because it does not support our western narrative…stand by for heavy rolls.

The Daily Hodl – 21 May 23

13 Countries Formally Request to Join BRICS As Economic Alliance Challenges...

A total of 13 countries have now formally asked to join the global economic alliance known as BRICS. In an interview with TV BRICS, African Ambassador Anil Sooklal says nations from Africa, Latin America and Asia are looking to become new members.

Est. reading time: 1 minute

Rurudyne · 2023-05-21T20:01:53.322Z

Pretty sure I heard it in use, at least here in North Texas, before the Simpsons was on the air.

Gaius · 2023-05-21T22:13:59.239Z

Does not matter.

What matters is the central banks, private banks, and money holders of every sort will hold whichever secure currency pays the most vs. its inflation rate.

It has always been this way.
It will always be that way.

“Follow the money.”

Nemesis · 2023-05-21T23:55:32.174Z

I can see why the United States does not want to see their economic might be challenged but nothing we can do about it. Countries are free to make whatever allegiances, pacts, treaties they want.

Gaius · 2023-05-23T03:13:06.512Z

Nemesis:

Countries are free to make whatever allegiances, pacts, treaties they want.

I do not know of anyone anywhere who has ever said otherwise.
But I if I ever meet than man I will know that you just GOT HIM!!

Gaius · 2023-05-23T03:21:04.216Z

Only 6 times since 1948 has US currency devalued so much, so quickly, that our CPI inflation rate crossed up over 5%.

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I am skeptical that Powell’s approach to containing it will work, but let’s set that aside for the moment.
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Below is a table of recent annual inflation rates in Brazil
(The “B” in "BRICS stands for Brazil.)

Tell me if you see anything interesting.

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macrotrends.net

Brazil Inflation Rate 1981-2023

Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres...

floydefisher · 2023-05-31T02:27:40.256Z

To pay the US debt he can.

He just can’t do it to pay for anything else.

Ben_Natuf · 2023-05-31T03:58:23.602Z

no, he can’t spend any money the Congress does not allocate

Ben_Natuf · 2023-05-31T22:12:08.161Z

Gaius:

Only 6 times since 1948 has US currency devalued so much, so quickly, that our CPI inflation rate crossed up over 5%.

Not saying its good or bad, but conversly, looking at that chart, since 1948 the CPI inflation rate has only crossed over below 5% 5 times.

Ben_Natuf · 2023-05-31T22:18:00.741Z

Now, about BRIC’s. Supposing of course they create a common BRIC’s currency. What do you suppose will happen? The Euro was supposed to compete with the dollar, for the most part it failed. Think PIIGS. Now think about a whole lot more PIIGS all owing China a lot of money. If China wants its money back and its currency to hold up, its going to have to pour a lot of money into shoring up those PIIGS.

Gaius · 2023-05-31T23:37:24.303Z

First the America bashers said the Euro would replace the dollar.
Then America bashers said bitcoin would replace the dollar.
Then the America bashers said BRICS would replace the dollar.

The Euro is relatively strong and stable currency held up by strong stable currencies, from countries that have strong and similar currencies. Nonetheless it is a charity program by which stronger, more-free economies subsidize weaker less-free economies.

twitter.com

Michael A. Arouet

@MichaelAArouet

Absurdity of the Euro chart on Italy election day👇 In 25 years before Euro Italian Lira lost 83% against Deutsche Mark, since then they are pegged. How on earth can it work? https://t.co/IrItJ3G8km

7:21 AM - 25 Sep 2022 570 110

Gaius · 2023-05-31T23:42:44.575Z

Ben_Natuf:

Gaius:

Only 6 times since 1948 has US currency devalued so much, so quickly, that our CPI inflation rate crossed up over 5%.

Not saying its good or bad, but conversly, looking at that chart, since 1948 the CPI inflation rate has only crossed over below 5% 5 times.

What it means is that the US dollar has consistently been stronger vs dollar inflation compared to the weak banana-peel currencies of banana republics, and the toilet paper of socialist economies.

BRICS may dent the dollar as a currency of exxhange.
But so long as dollars pay 3% vs 2% inflation,
and opposing currenicies pay 3% vs 10% inflation,
the dollar will be the reserve currency.

Banks, (central and private) do not hold assets that are guaranteed losers when a most-fo-the-time winner is availlable.

Nothing, absolutely nothing in the history of the BRICS economies suggests they are willing to offer interest rates > inflation for an extended period.

floydefisher · 2023-06-01T12:31:55.112Z

14th amendment states US debts must be paid.

He can, but only to pay on the US debt. Not to re-open the government.

Ben_Natuf · 2023-06-02T00:18:47.924Z

floydefisher:

14th amendment states US debts must be paid

No it doesn’t, It says they cannot be questioned. Who’s questioning them?

floydefisher · 2023-06-02T14:04:52.053Z

If it can’t be questioned, then it’s legitimate, and must be paid.

Look, if you don’t want to raise the debt ceiling to pay my military pension, I fully understand and will patiently wait on such, but if you don’t pay China, you risk nuclear fallout on LA.

The consitution is not a suicide pact. When faced with that, you raise the debt ceiling and pay China.

Ben_Natuf · 2023-06-02T17:27:34.320Z

floydefisher:

If it can’t be questioned, then it’s legitimate, and must be paid.

with the money the congress authorizes.

Nobody is questioning it. It will be paid. It will be paid, when the congress authorizes it and not before.