“The larger the US balance of payments deficit is, the more it spends militarily and politically around the world, the more foreign central banks end up financing the domestic budget deficit so that the US Treasury doesn’t have to borrow from US investors – it doesn’t have to create money itself…
Well, that means that foreign countries are, in effect, financing the costs of surrounding them with all of the military bases… in case you fail to follow the University of Chicago and IMF financialization, they will use the military lever to convince you to follow the IMF.
So the question is, how do China, Russia, Iran and other countries break free of dollarization, of this circular flow that is self-financing American military spending by forcing the costs onto dollar holders? Well, the answer obviously is not to use the dollar.”
Michael Hudson Master Class on Dollar Hegemony:
"The larger the US balance of payments deficit is, the more it spends militarily and politically around the world, the more foreign central banks end up financing the domestic budget deficit so that the US Treasury doesn't have to… pic.twitter.com/jcaSxBDYnQ
— COMBATE |🇵🇷 (@upholdreality) June 21, 2023