We need to stop the overspending
To the Editor:
The article regarding the backlash over Biden’s forgiveness of student loans was another, “Well, Susie did it!” diatribe. The information about the PPP payments made to a particular Republican was more confusing than informative.
Americans have no idea how their tax money is being spent, by whom, for what reason, how much foreign aid goes to our enemies, how many representatives and senators vote present, etc. The private club that peoples Washington, D.C., is termed government, but it’s not governing.
Americans are astonished that repressive governments like China, Russia and Venezuela own and dictate reporting of TV stations, newspapers, their hosts and columnists, and our media is controlled exactly as the “bad guys” are.
While media intentionally hypes party division, they distract us from the frightening realization that we, as a country, are outspending our income. Reporting that irresponsibly hypes political division advances the ticking timebomb.
The USA has held the status of reserve currency for almost a century; that means we get a cut on every single deal between countries who trade, unless those countries have existing trade deals. That’s like collecting tolls for bridges outside this country. We have reserve currency because the USA was stable, had superior production, and a reliable political and monetary system. Americans believed their president was elected fairly. We spent less than we made. Today, the significant difference is our president is detonating our monetary system and replacing it with a universal give-away system, plunging the USA into global bankruptcy.
The U.S. will collapse if government officials, at the very top continue oppressive burdens on taxpayers while bailing out the world. Pointing fingers will be as effective as ordering strychnine for arsenic poisoning.
Kathryn van Heyningen
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While I think everyone can agree that the government could stand the tighten the belt, I do take issue with comments here about reserve currencies which I consider to be highly misleading.
"Reserve currency" is not a specific status to be held as this letter implies - at least not in the last half-century. What official status the US dollar (USD) had, expired in 1973 with the expiration of the Bretton Woods Agreement, which lasted less than 30 years. Regardless of that loss of official designation by the IMF, the USD is still the most widely held reserve currency by other countries (nearly 60% of international reserves are in USD). The next closest currency is the Euro at 20% of international reserves. That's not an insignificant gap.
I am curious about the writer's sources for the statement that the US "gets a cut" on foreign transactions (presumably limited to those made in USD). What the US can definitely glean, however, is increased international investment in US Treasury and municipal bonds (which help fund infrastructure projects, for example). There's also certainly international prestige that comes with being a currency that holds value almost anywhere you can travel.
Remarkably, despite our own domestic inflation, it's been pretty tame here compared to other countries. This only reinforces the value of the dollar. Aside from that, the benefits of being the leading reserve currency are actually debated by scholars. For instance, China, a peer rival, is the leading holder of US Treasury Bonds.
While it's true that the dollar's share of international reserves worldwide has declined steadily in the past 20 years, that decline has much, MUCH more to do with the establishment and rise of the Euro, a 20-year unconventional war, and the habits of China, rather than the impact of any single president; much less a president who has been in power aside a dysfunctional congress for less than half a term.
(citations: IMF data, Council on Foreign Policy)