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Counterfeit USD is a small, inexpensive problem because of US military might. The biggest guy in the playground never actually needs to fight. Imagine for a mo

Counterfeit USD is a small, inexpensive problem because of US military might. The biggest guy in the playground never actually needs to fight. Imagine for a moment the world suddenly adopted the Nicaraguan Córdoba as the common reserve currency. How long before it gets printed everywhere? Who is going to stop it? And how far do you think Nicaragua's AML/KYC regime would actually reach? Iceland's currency wouldn't work as a world reserve either, for pretty much the same reasons. You can get away with being small and isolationist if your currency isn't that important. Make no mistake, "cut off from the entire world financial system" requires the threat of violence. Banks get fined, countries get sanctioned, warrants are issued for people that have never set foot in the US. I don't know exactly how to apportion the cost of that enforcement, but I know you can't ignore it.

arcticbull 5y ago
> Counterfeit USD is a small, inexpensive problem because of US military might. The biggest guy in the playground never actually needs to fight. [citation needed] > Imagine for a moment the world suddenly adopted the Nicaraguan Córdoba as the common reserve currency. How long before it gets printed everywhere? Who is going to stop it? And how far do you think Nicaragua's AML/KYC regime would actually reach? Why would any state on earth illegally print Nicaraguan money when they can instead print their own legally? What's the goal? Is this really the easiest path to achieve that goal? > Make no mistake, "cut off from the entire world financial system" requires the threat of violence. It really doesn't. In this case the carrot is way bigger than the stick.
- stickfigure 5y ago
  > [citation needed] Please tell me, what stops North Korea (or Iran, or any other US-hostile nation) from printing as many USD as it likes? Don't tell me "risk of being cut off from the US financial system"; they already are. Furthermore, NK already tries: https://www.google.com/search?q=north+korea+counterfeit https://www.google.com/search?q=north+korea+counterfeit > Why would any state on earth illegally print Nicaraguan money when they can instead print their own legally? What's the goal? Is this really the easiest path to achieve that goal? You seem to have just asked "Why would any state on earth illegally print the world reserve currency when they can instead print their own legally?" That seems pretty self-evident, but you can look to Venezuela or Zimbabwe for answers.

arcticbull 5y ago

> Counterfeit USD is a small, inexpensive problem because of US military might. The biggest guy in the playground never actually needs to fight. [citation needed] > Imagine for a moment the world suddenly adopted the Nicaraguan Córdoba as the common reserve currency. How long before it gets printed everywhere? Who is going to stop it? And how far do you think Nicaragua's AML/KYC regime would actually reach? Why would any state on earth illegally print Nicaraguan money when they can instead print their own legally? What's the goal? Is this really the easiest path to achieve that goal? > Make no mistake, "cut off from the entire world financial system" requires the threat of violence. It really doesn't. In this case the carrot is way bigger than the stick.

stickfigure 5y ago
> [citation needed] Please tell me, what stops North Korea (or Iran, or any other US-hostile nation) from printing as many USD as it likes? Don't tell me "risk of being cut off from the US financial system"; they already are. Furthermore, NK already tries: https://www.google.com/search?q=north+korea+counterfeit https://www.google.com/search?q=north+korea+counterfeit > Why would any state on earth illegally print Nicaraguan money when they can instead print their own legally? What's the goal? Is this really the easiest path to achieve that goal? You seem to have just asked "Why would any state on earth illegally print the world reserve currency when they can instead print their own legally?" That seems pretty self-evident, but you can look to Venezuela or Zimbabwe for answers.