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Because they issue a lot of debt in USD. They can't print their way out of debt the way the US can and does.
by darthvoldemort 5y ago
Because they issue a lot of debt in USD. They can't print their way out of debt the way the US can and does.
- ArtTimeInvestor 5y agoWho issues it? The government? If so, who lends those Dollars to the government?
- refurb 5y agoMy understanding is the government would sell debt and get USD in return. When the debt matured, the bond owner would get USD in return. USD bonds are more attractive since they remove the exchange rate risk, but as happened, the government could t repay the debt in USD.
- JumpCrisscross 5y ago> they issue a lot of debt in USD Nobody wants bolivar-denominated debt. Because Caracas keep printing. The U.S. dollar has no divine right to being infinitely valuable.
- drfxyjhdyfrhgc 5y ago>The U.S. dollar has no divine right to being infinitely valuable. The U.S. dollar is often the least silly of many options.
- desine 5y agoWhile comparatively stable, the US Dollar is able to fall to the same faults that many other currencies have in history. There's only one form of money that's retained value for over 6000 years of human civilizatoin.
- simonblack 5y agoOnly as long as people believe in it. With a national debt of over 30 trillion, it's amazing that some people can still believe that the US will pay all that debt back. The USD will crash sooner rather than later.