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> The main product made by the US is the dollar, Very good point and one that not a lot of people understand. There is also a tipping point at which governmen
by insane_dreamer 2y ago
> The main product made by the US is the dollar,
Very good point and one that not a lot of people understand.
There is also a tipping point at which governments will look elsewhere for a reserve and trading currency. Yes, today the USD is king, but that's in part because China's efforts to make the RMB a reserve and trade currency are half-hearted as they conflict with its efforts to retain an iron control over its currency exchange rate.
If the USD loses its preeminant status as _the_ global currency, the US is in very deep trouble.
This plays into the Middle East in ways that many people don't realize. The Gulf countries only sell their oil for USD (in exchange for protection from the US). The US has a very big stake in that continuing to be the case. Now granted, they are less important than they used to be because of fracking, but still a major player. (Some people say the invasion of Iraq was because Sadaam threatened to start selling oil for EUR instead of USD. I don't know if that's true or not, but it's definitely a plausible reason.)