Quote from: davis196 on Today at 04:31:08 AM

The only weapon that FED has is money printing and they will use it to the full extend.
The article says nothing new.I somehow disagree with the $ value=belief=fear equation.The US dollar is still backed by the power of the US economy,by all the goods and services that are produced in the US.
I don't agree with the inflation=withdrawal of belief equation posted by the author.Inflation is just the lack of balance between money supply and the supply of products/services.The money supply growth is just bigger than the production growth,thus the value of the money decreases.

Since the trade war occurred between America and China there has been a shift in the poles of the two economies. Trump becomes socialist and Xi becomes capitalist.

In the Trump administration, the strengthening of state intervention in the democratic system occurred. Trump's policy related to political nationalism and economic protectionism as the foundation of the American political economy is a sign of the threat of a free market economy between countries which has been the main foundation of the world system since the end of the cold war in the decade of the 90s.

On the other hand, the strengthening of state capitalism as the basis of market ideology adopted by China also increasingly causes the discourse of economic nationalism to strengthen. In China, economic activities for profit are carried out by the state. Whereas the means of production are organized and managed by state-owned enterprises, including the process of capital accumulation, labor costs, and centralized management.

For the FED, it is possible that at present state capitalism is the most reasonable theory because this system can guarantee long-term stability and economic growth in a way that liberal democracy cannot. But totalitarianism is a logical consequence of the basic principle of socialism. Because the basic principle of socialism is the nationalization of the means of production, so it needs central planning (central planning) and the active role of government in economic activity.