4 ms·
This is a blind spot for Americans, but the main reason you can print so much money without a penalty, is because foreign entities that hold dollars as a reserv
by pineaux 5y ago
This is a blind spot for Americans, but the main reason you can print so much money without a penalty, is because foreign entities that hold dollars as a reserve currency, have a vested interest in keeping the dollar stable.[1] They buy up dollars to increase their reserves and keep the dollar inflation low. America can do this because they can protect their world reserve currency status by show of force.
[1] https://www.investopedia.com/articles/forex-currencies/092316/how-us-dollar-became-worlds-reserve-currency.asp https://www.investopedia.com/articles/forex-currencies/09231...
[2] https://www.gresham.ac.uk/lecture/transcript/print/when-currency-empires-fall/ https://www.gresham.ac.uk/lecture/transcript/print/when-curr...