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Why not take advantage of the dollar being the global reserve currency and just keep increasing the debt? Its not like the debt is in some other currency. Its i
by option_greek 5y ago
Why not take advantage of the dollar being the global reserve currency and just keep increasing the debt? Its not like the debt is in some other currency. Its in the same currency so all that the debtors want is more of the same.
Any good arguments on why this can't continue forever? (obviously other nations can't do this)
- deleted 5y ago[deleted]
- howmayiannoyyou 5y agoLosing reserve currency status happened to the Brits beginning in the 1930's and the upheaval it caused was masked in part by the greater hardships and sacrifices of WWII, and the assistance a wealthy (in terms of goods production) America provided GB. It didn't take much for the world to lose confidence in sterling... just the loss of a few colonies to independence & out of control spending. Sound familiar? A new reserve currency need not be the Yuan or the Euro. There's ample cryptocurrency analogs with the transactional capacity to assume the dollar's reserve/transactional role. Overconfidence in the dollar is what national security experts might term: "Strategic narcissism".