Posted by u/lughnasadh
America is broke and depends on borrowing from foreigners. What happens if they cut up the credit card? We may be about to find out.
The dollar is America's greatest strength, but also its Achilles heel. Its status as the world's reserve currency allows the US to borrow vast sums from the rest of the world at ultra-cheap rates. No other currency has this privilege. But there is another type of price to be paid. Access to such easy money means America is vastly in debt. The annual interest payments alone are close to a trillion dollars. Many wonder if the capital, about $38 trillion, can ever be repaid. The US's ability to be a superpower and fund its military depends on this cheap borrowing. What happens if the whole system suddenly implodes? The idea used to be thought of as fanciful, but is now being taken more seriously. The US's threat to invade European territory and annex Canada has made some in those places wonder if they should use their biggest weapon - cutting off the US's credit card. The blowback would be huge for them too, but as former allies inch closer to war, such things become more likely. If this happened, would this lead to a rapid reorganisation of the world order? Who would emerge strong or weaker from the wreckage? What would it mean for science, tech, and AI development? DAILY TELEGRAPH (BRITISH) ARTICLE - Trump has crossed all lines: it is time to cut off his global credit card
More from r/Futurology
After laying off 10,000 workers for AI, Meta installed tracking software on remaining employees’ work computers to log mouse movements, clicks, keystrokes, and screenshots, using the data to train their AI replacements.
One of the most egregious 'everything-will-be-OK' arguments that repeatedly gets trotted out about our future when AI...
Europe set 2030 as a date to dismantle its reliance on US financial infrastructure like Visa/Mastercard payments; it's happening far quicker.
Now that the US sees the EU as a potential enemy, Europe has moved to ensure its financial system can never be...
With no China, US, or OPEC to block or veto measures. 60 governments, incl. Brazil, Germany, Canada, and Nigeria will hold the first international meeting this week to discuss phasing out fossil fuels.
One of the major stumbling blocks to existing international efforts to phase out fossil fuels, like the COP climate...