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> no, the move away from the dollar will not hurt the US I doubt that. The US has been able to both support a trade imbalance and print money at prodigious ra
by mpweiher 4y ago
> no, the move away from the dollar will not hurt the US
I doubt that. The US has been able to both support a trade imbalance and print money at prodigious rates that would be unsustainable for any other country.
I remember articles from economists pointing this out going back to the eighties.
One important reason for this is that not all dollars the US prints inflate the local money supply. Instead, they go out into the world where they are used by other countries to trade amongst themselves, without US involvement (and reserves).
It's like writing a check that is never cashed. Cool if you can pull it off.
You mention foreign investment. Well, if the value of the dollar goes down, because demand for those dollars is lower, those investments also become less attractive. Could cascade.
- eternalban 4y ago> print money at prodigious rates +All that debt will become 'real'. We could look to UK and see what happens to a nation post (currency) empire. But a word of caution here regarding the analogy: the new empire (US) were allies of the dethroned empire (UK). Come US's time, it is doubtful that the new power will be a Western power. So US will have a harder time than UK and things have not gone well for UK since WW2. Zombie International Currency: The Pound Sterling 1945-1973, 2021: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP03-2020.pdf http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP...