What’s the difference between Brazil government debt to GDP at 80% and US debt to GDP at 100%?
The Brazilan Real is not a world reserve currency and international trade is not traded in Reals. The largest item is oil/energy, its is solely the reason the US is knee-deep in places like Syria, Iraq and Libya.
Having the world’s largest reserve currency, having the world trade oil in US Dollars, and having a huge military to keep the world existing geo-political alignments in place means the USA has a big advantage
The USA will run a $1 Trillion budget deficit this FY. Americans will buy some of that debt, but so will many foreign investors and central banks. That keeps our interest rates low and gives huge advantage to stupid US politicians to spend (and waste) money. IMHO, progressives, leftists and our coastal political and academic elites in CA, MA, DC and NY City would disappear immediately without their special access to this printed money and debt. They are huge beneficiaries of this special advantage.
China and Russia aren’t fools. They will continue to attack this special advantage of their adversary.
Ok so maybe I wasn’t clear as the BRL has never been considered in this context. Also, because it’s a non-deliverable currency for the most part, like CNY it cannot be fully utilized as such anyway.
I’m not about to dispute the awful course we’re on as a country driven solely by a combination of US Treasury appetite and profligate spending.
The Chinese and Russians certainly are not foolish and if they desire, they can trade oil (to China) for capital (to Russia) all day every day and would still be stuck with each others currencies unless they converted to gold or, you guessed it, the USD to make other payments that countries like Brazil and EU-land would accept as those countries are not looking to strengthen their currencies anytime soon.
Your anger is properly placed. The world stage at this point in time just hasn’t caught up.