7 ms·
> it wouldn't make people using other currencies poorer. My country produces gas, oil, lumber, food, metals. When USA prints another few billions, they can si
by anticodon 5y ago
> it wouldn't make people using other currencies poorer.
My country produces gas, oil, lumber, food, metals. When USA prints another few billions, they can simply come to any company producing these resources, and offer higher price. Because the money doesn't cost US anything: they just printed them.
For the local company it makes more sense to sell to the US customer at higher price than to local customer at lower price in local currency.
So, when US prints another billion, it means that local companies experience resource shortages and rising prices, because everything is exported to USA.
To add insult to injury, money earned by the exporters almost never end up in the local economy. Exporter just hoard them in offshore banks.
This scheme of things is extremely beneficial for the US economy and inimical to all other economies in the world.