Futurology

2453 readers

36 users here now

founded 2 years ago

MODERATORS

A plausible scenario for how Trump will spark a hyperinflation crisis in the US, and end the dollar's role as global reserve currency. (futurology.today)

submitted 4 days ago by [email protected] to c/[email protected]

3 comments fedilink hide all child comments

Ambrose Evans-Pritchard lays out the likely steps in how this will happen in this article.

He says Trump will take direct control of the Federal Reserve to lower interest rates. This, and his global tariff war, and tax cuts for the rich, will stoke huge levels of inflation in the US. Think of Erdogan's Turkey for comparison.

By this point, the foreigners who finance US government debt by buying Treasury bonds will start to lose confidence in the dollar as a currency.

This crisis will force money printing (quantitative easing) and capital controls, both furthering the currency crisis and perhaps leading to hyperinflation.

I hope there are sunny uplands for the world ahead, and the transition to get to them isn't too long. We were always going to have to endure economic pain as we transitioned to a world where robots/AI can do all work. I suspect that pain is going to start sooner than we expected.

top 3 comments

sorted by: hot top controversial new old

[–] [email protected] 2 points 4 days ago

At this point just about anything is plausible.

But surely doing that would hurt Trump pretty bad (along with everyone else) who must have a lot of stuff denominated in USD.

[–] [email protected] 1 points 4 days ago (1 children)

He won't be able to just take control of the Fed without Congress, and he's already broken the majority support there over this dumb tariff bullshit. Hopefully he's already broken his support line in just two months. We shall see.

[–] [email protected] 3 points 4 days ago

He won’t be able to just take control of the Fed without Congress,

Perhaps, but they've abdicated responsibility on everything else so far. I understand that people have hope the normal times will resume, but autocracy has a trajectory. So far, almost nothing has stopped it in the US.