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It works for all currencies. Some currencies have higher savings rates than other currencies. The problem is calling that saving 'debt' and then catastrophisin
by neilwilson 3y ago
It works for all currencies. Some currencies have higher savings rates than other currencies.
The problem is calling that saving 'debt' and then catastrophising about it.
- KoolKat23 3y agoMost countries are not self-sufficient and do export/import and many countries are not able to issue debt in their own currencies.
- neilwilson 3y agoSo what? You can only import what you can export. In a floating system that swaps the currencies around just fine. Draw it out and do the balance sheets. Local importers end up paying the local currency costs of exporters.
- PaulDavisThe1st 3y agoIIUC, it works for all currencies that are coupled to the economic and political policy making process. It does not work when the currency value is controlled to any significant degree by parties outside that process. These are sometimes called "sovereign currencies", and US dollar is one example thereof.