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Minichan

Topic: RIP Petrodollar

Anonymous A started this discussion 3 hours ago #134,150

https://www.scmp.com/economy/global-economy/article/3349516/chinas-yuan-settlements-hit-record-and-iran-conflict-looking-catalyst

Hmmmm....

USB debt-to-gdp ratio is 125%. That is about the threshold for when most countries are certain to default.

The infinite money trick of printing cash and letting foreign USD holders pay the price instead of the domestic economy is now ending with Iran forcing ships to use Yuan if they want to get theough safely.

A lot of fat, spoiled Americans are going to be learning how to season rice and beans very soon!

The second blackest guy ever joined in and replied with this 2 hours ago, 11 minutes later[^] [v] #1,428,992

Hey, you can hate on Americas debt to GDP ratio, but at least we’re not Japan!

The second blackest guy ever double-posted this 2 hours ago, 4 minutes later, 16 minutes after the original post[^] [v] #1,428,993

I don’t have a real argument. At least we’re not the worst country in this regard. That’s always good to remember. Japan is.

The second blackest guy ever triple-posted this 2 hours ago, 58 seconds later, 17 minutes after the original post[^] [v] #1,428,994

…and they get most of their oil from the Middle East.

Anonymous A (OP) replied with this 2 hours ago, 3 minutes later, 20 minutes after the original post[^] [v] #1,428,995

@1,428,992 (The second blackest guy ever)

Famous economist Simon Kuznets said there are 4 types of economies:

1. developed
2. undeveloped
3. Japan
4. Argentina

The second blackest guy ever replied with this 2 hours ago, 5 seconds later, 20 minutes after the original post[^] [v] #1,428,996

The same way people from Cleveland say at least they’re not Detroit, Americans need to start saying "at least we’re not Japan" every time somebody mentions national debt.

https://youtu.be/oZzgAjjuqZM

Anyone reading this: call your congresspeople and tell them to adopt this as America’s official national debt strategy because nothing else is working.

Anonymous A (OP) replied with this 2 hours ago, 2 minutes later, 23 minutes after the original post[^] [v] #1,428,998

@previous (The second blackest guy ever)
Right, but don't expect to see that replicated here.

Japan does not follow standard economic realities.

The second blackest guy ever replied with this 2 hours ago, 1 minute later, 25 minutes after the original post[^] [v] #1,428,999

@1,428,995 (A)
My favorite economy is probably the Irish economy because they’re underpopulated, are technically a third world country by the original definition (not allied with the US or Russia), were oppressed for 800 years, and don’t do anything. But their GDP per capita is over $100,000 USD.

(Edited 1 minute later.)

The second blackest guy ever double-posted this 2 hours ago, 49 seconds later, 26 minutes after the original post[^] [v] #1,429,000

@1,428,998 (A)
Well, Japan’s economic problems are mostly because they have an aging population and they’re not attractive to immigrants. If Germany didn’t have immigrants it would have the same problems as Japan.

Anonymous A (OP) replied with this 2 hours ago, 2 minutes later, 28 minutes after the original post[^] [v] #1,429,001

@1,428,999 (The second blackest guy ever)
That is because of a tax avoidance scheme that puts money there on paper, it doesn't actually have such a high GDP per capita if you remove that.

The second blackest guy ever replied with this 2 hours ago, 29 seconds later, 28 minutes after the original post[^] [v] #1,429,002

@previous (A)
All money is paper. If it works it works.

Anonymous A (OP) replied with this 2 hours ago, 39 seconds later, 29 minutes after the original post[^] [v] #1,429,003

@1,429,000 (The second blackest guy ever)

Japan had unique economic dynamics before they had an aging population.

The second blackest guy ever replied with this 2 hours ago, 35 seconds later, 30 minutes after the original post[^] [v] #1,429,004

The genius of the Irish economy, is that money is fiat currency backed by nothing, the Irish simply realized this, and decided instead of putting in work, they could just change the rules to benefit their country. And you have to respect that.

The second blackest guy ever double-posted this 2 hours ago, 40 seconds later, 30 minutes after the original post[^] [v] #1,429,005

@1,429,003 (A)
Tbh I wasn’t around before 9/11 so I wasn’t around when their economy was good, so I kinda just believe whatever people say about it.

Anonymous A (OP) replied with this 2 hours ago, 53 seconds later, 31 minutes after the original post[^] [v] #1,429,006

@1,429,002 (The second blackest guy ever)
No, not really.

There's a difference between:

a) having paper money, and buying something from a real establishment and bringing it home. all in the actual country

b) a company existing in a country on paper only. the employees, owners, and consumers are all in a different country.

Anonymous A (OP) double-posted this 2 hours ago, 56 seconds later, 32 minutes after the original post[^] [v] #1,429,007

@1,429,004 (The second blackest guy ever)
No, that's not why their GDP per capita is higher.

The second blackest guy ever replied with this 2 hours ago, 50 seconds later, 33 minutes after the original post[^] [v] #1,429,008

@1,429,006 (A)
As long as the money is in Ireland, I don’t think it really matters where the employees are.

Anonymous A (OP) replied with this 2 hours ago, 38 seconds later, 34 minutes after the original post[^] [v] #1,429,009

@previous (The second blackest guy ever)
The money isn't in Ireland. The stockowners and the employees getting paid are elsewhere.

The second blackest guy ever replied with this 2 hours ago, 2 minutes later, 36 minutes after the original post[^] [v] #1,429,010

@previous (A)
Even if their GDP per capita is inflated, Ireland still isn’t a poor country in general.

https://www.visualcapitalist.com/mapped-which-european-countries-actually-pay-the-highest-salaries/

The second blackest guy ever double-posted this 2 hours ago, 3 minutes later, 39 minutes after the original post[^] [v] #1,429,011

All money is fake. Might as well treat it like it’s fake and be a tax haven. If it works, it works.

The second blackest guy ever triple-posted this 2 hours ago, 10 minutes later, 50 minutes after the original post[^] [v] #1,429,012

Ireland is also just based in general.

https://youtu.be/OfdxN1Xpjnk

Anonymous A (OP) replied with this 2 hours ago, 14 minutes later, 1 hour after the original post[^] [v] #1,429,013

@1,429,011 (The second blackest guy ever)
> If it works, it works.

What benefit do you think Ireland gets from this?

The second blackest guy ever replied with this 2 hours ago, 4 minutes later, 1 hour after the original post[^] [v] #1,429,014

@previous (A)
A government can increase corporate tax revenue by lowering taxes.

The second blackest guy ever double-posted this 2 hours ago, 1 minute later, 1 hour after the original post[^] [v] #1,429,015

From Wikipedia:

Ireland's Corporate Tax System is a central component of Ireland's economy. In 2016–17, foreign firms paid 80% of Irish corporate tax, employed 25% of the Irish labour force (paid 50% of Irish salary tax), and created 57% of Irish OECD non-farm value-add. As of 2017, 25 of the top 50 Irish firms were U.S.–controlled businesses, representing 70% of the revenue of the top 50 Irish firms. By 2018, Ireland had received the most U.S. § Corporate tax inversions in history, and Apple was over one–fifth of Irish GDP. Academics rank Ireland as the largest tax haven; larger than the Caribbean tax haven system.


https://en.wikipedia.org/wiki/Corporation_tax_in_the_Republic_of_Ireland

The second blackest guy ever triple-posted this 1 hour ago, 2 minutes later, 1 hour after the original post[^] [v] #1,429,016

The reason why countries become tax havens in the first place is because if you’re a country with a small population like Ireland, if you set the corporate tax rate to something absurdly low, so many companies from other countries will choose to do business in your country that the amount of foreign firms paying taxes offsets the fact that you lowered the tax rate, and you can make more money. But obviously larger countries couldn’t do this, if the US tried it, it wouldn’t work.

The second blackest guy ever quadruple-posted this 1 hour ago, 16 minutes later, 1 hour after the original post[^] [v] #1,429,018

Amazingly, Ireland has a decreasing debt to GDP ratio:

https://tradingeconomics.com/ireland/government-debt-to-gdp
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