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That is a side effect of the current debt-based economy, where every other country uses the US dollar as a reserve
by yuhong 8y ago
That is a side effect of the current debt-based economy, where every other country uses the US dollar as a reserve
- handsomechad 8y agoCan you (or some other knowledgeable person) explain the mechanics behind this. I've heard it a bunch of times and looked into it but I can't fully grok the advantage (and magnitude of the advantage) of being the global reserve currency
- yuhong 8y agoThe US has ran a trade deficit since the 1970s when they got off the gold standard. The current economy is based on creation of an almost infinite amount of debt. This is possible because they are the reserve currency, and in turn other countries would invest the dollars in things like Treasury bonds.
- markvdb 8y agohttps://www.investopedia.com/articles/economics/13/reserve-currencies.asp https://www.investopedia.com/articles/economics/13/reserve-c... gives you at least some idea.