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Sure, maybe Greece’s debt was denominated in Euros and Greece can’t print Euros. But the US is in a different position because it has the world’s reserve curre
by webinvest 6y ago
Sure, maybe Greece’s debt was denominated in Euros and Greece can’t print Euros.
But the US is in a different position because it has the world’s reserve currency. It maintains that position by simply depreciating less than all of the other major world currencies. If it looses that position, it would have disastrous effects on the purchasing power of the US relative to other counties.
- mempko 6y agoWhat about UK, or Japan, or China, which don't have reserve currencies right? They run deficits just like the US. It turns out, if your economy has productive capacity, it isn't really a problem to print your own currency. Economies that have trouble are those that are strapped for HARD resources (real stuff).