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Your "for nothing in return" is actually for the capitalization of the US dollar as the world reserve currency. If you thought price inflation was bad after Tru
by mindslight 2y ago
Your "for nothing in return" is actually for the capitalization of the US dollar as the world reserve currency. If you thought price inflation was bad after Trump's last spree of helicopter money, just wait until other countries' USD reserves are being dumped in earnest.
- nradov 2y agoDump in favor of what? Euros? Yuan? Gold? For better or worse there's still no practical alternative to the dollar as the world reserve currency, regardless of how the supply is inflated. The BRICS group keeps talking about creating a new currency for international trade but they can't agree on anything specific.
- Aeolun 2y agoThe EU seems like a more stable thing than the US these days. Japan has always been a stable thing. The west can’t really do India or China, but those would also make better options than the US right now. It’s not unprecedented for people to flee the USD.
- nradov 2y agoYou're missing the point. There's not enough Euro or Yen denominated assets to make that work. https://www.nber.org/digest/apr20/why-euro-hasnt-become-international-currency-stature https://www.nber.org/digest/apr20/why-euro-hasnt-become-inte...
- no_wizard 2y agoCould always move to a basket of currencies, that’s been proposed before
- cyberax 2y agoThat's just an accounting problem. Once the countries start dumping dollars and buying Euros, the ECB can just create new Euros out of thin air to prevent it from appreciation. Your own link basically says: "dollar is more stable and scalable, so people use it".
- mindslight 2y agoAll of the above with some real-time algorithmic settlement wizardry tying them together? Plenty of neoliberal looting to be had on the transition from countries holding high masses of assets to lighter weight just-in-time financial engineering, too.