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US is world reserve currency. We have the ability to print unlimited dollars. All other currencies are primarily backed by US dollars. Most important commoditie
by seibelj 5y ago
US is world reserve currency. We have the ability to print unlimited dollars. All other currencies are primarily backed by US dollars. Most important commodities like oil are priced in USD. Therefore, US drives inflation globally.
- mywittyname 5y agoNo. If the GBP goes up 10% relative to USD, and oil prices go up by 10% in USD, then oil prices remained flat in countries using the GBP, but increase for those using USD. There's no magic here.