News for hackers. Stuff that matters.

A comment on China sees new world order with oil benchmark backed by gold. Parent comment

Re:China sees new world order with oil benchmark backed by gold by adventured on Sunday September 03, 2017 @01:52AM (#15159902)
Meanwhile, back in reality, the US median income is among thh highest on earth, US disposable income is among the highest on earth, US economic productivity is among the highest on earth, US technology advancement is among the best on earth, US unemployment is low, US wages have been typically climbing twice as fast as in the EU, American companies dominate the planet (outside of China), and in the last ten years that Europe has been mostly treading water economically the US added an economy the size of Germany.
[ Parent | on HN ]
Re:China sees new world order with oil benchmark backed by gold by danmaz74 on Sunday September 03, 2017 @02:56AM (#15160052)
The big systematic problem the US is facing is that much of what you describe is heavily funded by the ability to print dollars to sustain the trade deficit - because the World needs dollars. In other words, the US is living above its means because the World is ready to give goods for paper (money).

That move from China is aimed at undermining this ability. I'm completely not rooting for the Chinese, but the risk is real. If they succeed, the US will need to cut internal consumption by 2.6%, which will hit heavily an already struggling middle class. Not a good prospect.

[ Parent | on HN ]
Re:China sees new world order with oil benchmark backed by gold by igravious on Sunday September 03, 2017 @02:08AM (#15159939)
This is all true. I don't disagree with you.

But. (There's always a but.) I'm not disputing that the US isn't a great economic powerhouse. What I'm getting at is, at what cost.

If the middle-class gets gutted and relative and absolute poverty keeps increasing then we're not really creating a just society, are we? In one of the wealthiest, if not the wealthiest nation ever if we still haven't figured out how to protect the most vulnerable among us then we've a bit of a problem. As some have suggested, maybe basic income is a solution? But to others you may as well have suggested that that dude Stalin may have made a nice omelette even though he broke a few eggs.

And outside the US, what the untenable situation where two countries (neither of which are the US) have to trade oil in dollars. For just how long do you think that arrangement will last? It could be, and has been, argued that some part of the might of the US comes from having its currency as the world currency and part of that is dollar-denominated trade. Cease that and the landscape alters. China knows that. Others know that.

[ Parent | on HN ]
Re:China sees new world order with oil benchmark backed by gold by ddorian43 on Sunday September 03, 2017 @02:59AM (#15160058)
China also knows that you get bombed/hacked/etc to oblivion for trying it.
[ Parent | on HN ]
Re:China sees new world order with oil benchmark backed by gold by nl on Sunday September 03, 2017 @12:53PM (#15162461)
Iran hasn't been bombed or hacked to oblivion for trying it[1]. Russia hasn't been bombed or hacked for trying to kill it[2]

[1] https://en.wikipedia.org/wiki/Iranian_oil_bourse

[2] http://www.nytimes.com/2008/02/25/business/worldbusiness/25i...

[ Parent | on HN ]
Re:China sees new world order with oil benchmark backed by gold by empath75 on Sunday September 03, 2017 @06:59AM (#15160797)
This too shall pass.

The us has been coasting on good will and trump is squandering it. Now that he world doesn't see the us as a reliable partner, we're going to see the rug pulled out from under us rather quickly. China right now looks like a safer bet if you're looking for an ally.

[ Parent | on HN ]