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Ah absolutely, the much more tangible short-term example of “guys with guns” is (admittedly ever more militarized) domestic law enforcement. But the implied th

Ah absolutely, the much more tangible short-term example of “guys with guns” is (admittedly ever more militarized) domestic law enforcement. But the implied threat towards anyone who say, started dumping US sovereign debt, or transacting petroleum in EUR, or whatever is very real. Countries have been liberated for less.

RealityVoid 5y ago
I admit it is mighty convenient for the US to have the dollar as the reserve currency, but really, you are stretching your point, people outside US not accepting US dollars don't have violent threats looming over them.
nradov 5y ago
China dumped a bunch of US sovereign debt. They haven't been "liberated" yet. https://www.cnbc.com/2020/11/02/china-drops-us-treasurys-impact-on-us-deficit-and-coronavirus-stimulus.html https://www.cnbc.com/2020/11/02/china-drops-us-treasurys-imp... Russia has started transacting petroleum in EUR. They haven't been "liberated" yet. https://www.reuters.com/article/us-rosneft-contracts-euro-idUSKBN1X31JT https://www.reuters.com/article/us-rosneft-contracts-euro-id... Petroleum transaction only make up a small fraction of worldwide dollar use. It doesn't really matter. https://foreignpolicy.com/2009/10/07/debunking-the-dumping-the-dollar-conspiracy/ https://foreignpolicy.com/2009/10/07/debunking-the-dumping-t...
- benreesman 5y ago
  Thank you for the links. I was unaware that the PRC’s Treasury holdings had been pared back so much. I do think it’s interesting to note that both of the examples you used are the only two countries that the US military wouldn’t like to try its hand against. And there is a broader point there: my original point becomes less relevant the further that global US hegemony slips.
- elvatoloco55 5y ago
  Exactly. And this is not due to the fact that they are the global powers of enough strength to be a big opponent. /S

RealityVoid 5y ago

I admit it is mighty convenient for the US to have the dollar as the reserve currency, but really, you are stretching your point, people outside US not accepting US dollars don't have violent threats looming over them.

nradov 5y ago

China dumped a bunch of US sovereign debt. They haven't been "liberated" yet. https://www.cnbc.com/2020/11/02/china-drops-us-treasurys-impact-on-us-deficit-and-coronavirus-stimulus.html https://www.cnbc.com/2020/11/02/china-drops-us-treasurys-imp... Russia has started transacting petroleum in EUR. They haven't been "liberated" yet. https://www.reuters.com/article/us-rosneft-contracts-euro-idUSKBN1X31JT https://www.reuters.com/article/us-rosneft-contracts-euro-id... Petroleum transaction only make up a small fraction of worldwide dollar use. It doesn't really matter. https://foreignpolicy.com/2009/10/07/debunking-the-dumping-the-dollar-conspiracy/ https://foreignpolicy.com/2009/10/07/debunking-the-dumping-t...

benreesman 5y ago
Thank you for the links. I was unaware that the PRC’s Treasury holdings had been pared back so much. I do think it’s interesting to note that both of the examples you used are the only two countries that the US military wouldn’t like to try its hand against. And there is a broader point there: my original point becomes less relevant the further that global US hegemony slips.
elvatoloco55 5y ago
Exactly. And this is not due to the fact that they are the global powers of enough strength to be a big opponent. /S