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> That's why the dollar is the global reserve currency: because it is the most desired currency. Why is that? Because we make our allies in the ME sell oil in
by chillwaves 10y ago
> That's why the dollar is the global reserve currency: because it is the most desired currency.
Why is that? Because we make our allies in the ME sell oil in dollars? And how long will this arrangement last?
The idea that the US can export its inflation and keep printing money indefinitely seems foolish to me.
- JumpCrisscross 10y ago> Because we make our allies in the ME sell oil in dollars? Petrodollarism has little to do with modern dollar hegemony. This is why we are fine building domestic energy sources, e.g. through solar and fracking. Dollars are valued because the American economy is huge. This means lots of Americans spend dollars, demand to be paid in dollars, and want to save and thereby invest in dollars. All this supports a deep and complex financial system. It's network effects backed by our military's de facto role as the global guarantor of freedom of navigation.
- rat87 10y agoI feel this is backwards, the oil is sold in dollars because most stuff international stuff is traded in dollars and because the dollar is the global reserve currency