4 ms·
> I expect the federal reserve won’t be able to print trillions of dollars with ease anymore once USD loses its global reserve status. That's not how central b
by adventured 5y ago
> I expect the federal reserve won’t be able to print trillions of dollars with ease anymore once USD loses its global reserve status.
That's not how central banking works at all, of course the Fed will find it trivially easy to print trillions of dollars without the global reserve currency. See: Japan (BoJ) and the EU / Eurozone (ECB). They both printed more per GDP or per national assets than the Fed has, and they didn't spark a gigantic wave of consumer inflation doing so either. Neither had anything remotely close to the global reserve currency.
China pours manufactured credit into its system whenever it feels like it to juice their economy, and is one of the most indebted nations (at this point it's drowning in debt). They did it all without the global reserve currency, they do not find it difficult to print at will (while leaning on a currency with far less global exposure than the Yen).
Fortunately the USD as global reserve currency is only strengthened by what Russia is doing, and what China will do next in Taiwan, rather than the opposite being the case. The USD as global reserve currency is going nowhere in the next several decades at a minimum.