For a business form a lot of people have no idea how things work. You know when we buy things from India or import products from a third world sweatshop, the money doesn’t disappear right? A simplified way of demonstrating what happens is to say that we pay USD to the importer of the product, who pays the Indian sweatshop owner who produces the products who pays the workers earning $2/hour. The only reason they want USD is if they will have plans to purchase US goods, or buy from someone else using those USD who then plan to buy US goods. If they plan to buy US assets like stocks or bonds, same situation, they’re trying to generate a return to then buy even more US goods or buy from someone who will buy US goods.Of course the technicalities of this process occur through currency broker dealers, so the dollars would be swapped for the local Indian currency before it gets to the workers, but this doesn’t change the fundamentals because whomever swaps Indian rupees for USD has plans to buy U.S goods (or buy from somebody who will).People here talk about repatriations and foreign imports like they're black holes of money, like the money just vanished. The funny thing is even if this narrative was true, it would still be good for us. It means we are giving up worthless dollars that we can print at whim in exchange for real products produced by foreign slaves
>>61198337>foreign trade is good just believe meNo
>>611983374chan is overrun by consensus cracking bots that want retards to accept policies that are against their interests
>>61198337I am just going to copy paste LLM slop from the other thread>>519824026**The core problem:** Your model assumes foreigners will perpetually want dollars to "eventually buy U.S. goods." But what happens when:1. **The U.S. hollowed out its manufacturing base** and can't produce goods competitively anymore. We literally had to beg China for masks during COVID. The "exorbitant privilege" of reserve currency status became an "exorbitant burden"—we offshored our industrial capacity and now depend on potential adversaries for critical supplies, including military components.[1][2][3]2. **Foreign central banks stopped buying Treasuries around 2014**. Despite continuing to run trade surpluses, they redirected dollars into gold (1,000+ tons/year since 2022), Belt and Road infrastructure, and direct commodity deals. The recycling mechanism you describe simply doesn't function anymore.[4][5][6][7]3. **The debt trap is real**. At 120%+ debt-to-GDP with interest expense plus entitlements consuming 108% of peak tax receipts, the U.S. faces impossible choices. We can't actually print "at whim" without consequences—either path (defend the dollar via rate hikes OR print to suppress rates) leads to currency debasement.[11][12][13][14]**The "free lunch" illusion:** Yes, theoretically we could print dollars for real goods indefinitely—but only until trading partners realize they're accumulating claims on an over-indebted, de-industrialized economy that can't honor obligations without massive currency debasement. That realization already happened, which is why we're seeing "gold recycling" replace "petrodollar recycling" as the global settlement mechanism.[7][15]
>>61198409(continued from above)The system you describe worked 1974-2011. It's been breaking down ever since.[1](https://www.youtube.com/watch?v=cl32TIpiVrk)[2](https://www.youtube.com/watch?v=DenTTuvGx6o)[3](https://www.tftc.io/tftc-china-us-debt-spiral-rare-earths-luke-gromen/)[4](https://www.thegreatsimplification.com/wp-content/uploads/2023/10/TGS91LukeGromenTranscript.docx.pdf)[5](https://www.macrovoices.com/podcast-transcripts/887-luke-gromen-u-s-dollar-deep-dive)[6](https://www.itmtrading.com/blog/luke-gromen-us-braces-for-capital-controls-as-global-trade-reset-begins/)[7](https://www.youtube.com/watch?v=xerrmgzBXDE)[8](https://www.youtube.com/watch?v=bIq0o40Jo80)[9](https://www.resilience.org/stories/2023-10-04/luke-gromen-peak-cheap-oil-and-the-global-reserve-currency/)[10](https://www.thegreatsimplification.com/episode/91-luke-gromen)[11](https://ingoldwetrust.report/special/from-trade-restructuring-to-monetary-reset-luke-gromen-debates-louis-vincent-gave/)[12](https://adamtaggart.substack.com/p/luke-gromen-darius-dale-why-money)[13](https://www.idnfinancials.com/news/55869/luke-gromen-us-government-will-allow-dollar-to-devalue)[14](https://dailyhodl.com/2025/07/13/macro-guru-luke-gromen-predicts-us-dollar-devaluation-says-government-will-sacrifice-usd-amid-high-debt-levels/)[15](https://www.youtube.com/watch?v=0FqXODbjrEk)
>>61198409None of these contradict the argument.“No one wants usd anymore”If that were true they wouldn’t be accepting them as payment for goods and services
Rural retards want tariffsSmart city people know free trade and dropshipping is good for us
>>61198413The argument isn't about the payment currency. The LLM argument is that trade surpluses are stored in gold, instead of treasuries now.Central banks are storing future purchasing power in gold. So they don't really care what currency is used in the future to buy stuff. It may be USD. But they don't care.
>>61198435That’s unrelated to the overall point of my thread.Treasuries still exist, even if demand for them drops, they’ll still be out there, just trading at a higher yield.That’s not good but it says nothing about the concept of free trade.
>>61198447Usually when real yields go down gold goes up and vice versa.But that hasn't been the case for a few years now.Source: https://www.longtermtrends.net/gold-vs-real-yields/It means a regime shift has happened, already.
>>61198473My arguments about free trade remain true in any market economy with their own currency. You could apply the same logic to Sweden or England.Nations that use common currencies have different self corrective mechanisms
>>61198596Only USA can mint USD and USTs. Every other country had to export stuff to get USD/USTs until recently. Now they export stuff to get gold instead.It destroyed US industry because USD/UST was the most competitive export of USA, it was cheaper to mint USD and import stuff from elsewhere. It got so bad even US ships are made in South Korea. Inside USA only industries adjacent to minting new USD prevailed e.g. politics, finance, law, NGOs, high margin SaaS and biologics.That will hopefully change now that every other country uses gold to store purchasing power. USA will now need to build its own local industry to be able to still mint USD/UST to buy stuff from US mainland.Source: https://en.wikipedia.org/wiki/Dutch_disease
