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That is cool and all; but if the US is going to seize assets after building a watertight legal case then countries can't just by default leave their sovereign a
by roenxi 2y ago
That is cool and all; but if the US is going to seize assets after building a watertight legal case then countries can't just by default leave their sovereign assets in places where the US can seize them. A country's bankers are not interested in taking that sort of risk needlessly, there needs to be something in it for them.
Of course the international finance system is complicated so maybe there still is enough of a payoff to holding US dollars, we're seeing something of an exploratory process here as China, Russia and probably India start testing the system. It might hold.
- ramesh31 2y ago>there needs to be something in it for them. There is. The Fed's 5% rate (along with 3% inflation) is the envy of the entire world right now. Where else on earth are you going to get that, with the only stipulation being "don't violently invade your neighboring countries"? There's simply no alternative, unless you trust China more than the US Government.
- elzbardico 2y agoThere's no such stipulation. The stipulation is: don't challenge our power.