> The entire world (including the US federal government) has taken a short position on the US dollar
I read this as a prediction of some type of crisis.
Anyway, wrt the US Federal Government, having government debt is not that same as having a short position. For one, the US Fed govt's revenue (i.e. tax collection) is denominated in the same USD as the debt. So if USD goes up, tax collection go up.
Name 1 example of a currency crisis where the debtor nation had debt denominated in their own currency.
I'll save you the time. There are no examples.
Every currency crisis has debt denominated in a foreign currency.
- Germany in the 1930 (WW1 reparations were gold marks)
- Argetina (foreign borrow and currency peg to USD).
- Thailand.
- Turkey (now, borrowed in Euro).
"The price index for used vehicles rose 0.2% in July, after having risen at least 7.3% in each of the previous three months. The category was one of the few, along with hotel rooms and airfares, that drove recent inflation, the economist Paul Krugman pointed out on Twitter. “Combined, these three sectors account for…more than 1/2 [half] of inflation over the past three months,” Krugman wrote. In May, in fact, a full third of the overall price rise was due to the surge in used car prices."
not really
https://www.federalbudgetinpictures.com/do-the-rich-pay-thei...
https://taxfoundation.org/research/all/eu/taxing-high-income...