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Yes, that's exactly what a liability is! US currency is an IOU. The more of it out in the world the less value there is in America's domestic assets.
by hattmall 2y ago
Yes, that's exactly what a liability is! US currency is an IOU. The more of it out in the world the less value there is in America's domestic assets.
- Centigonal 2y agoI meant "liability" in the sense of "is the US's status as the global reserve currency, on balance, a bad thing for the US?" not in the sense of "Is a US dollar abroad an asset or a liability on America's balance sheet?" Probably could have used a better word.
- sebmellen 2y agoCurious on your thoughts in response to my sibling comment :)
- 8note 2y agoi generally cannot go to the US government with a dollar to withdraw its worth in gold. US debt is an IOU, but USD is just an object that i can barter with
- hattmall 2y agoSure it's not exactly an IOU but it more or less entitles you to a certain bit of the American people's labor or assets. Billions / Trillions of dollars in USD overseas waiting to be traded in is not a good thing for people who aren't in a position of international rent seeking. The average American is harmed not helped by foreign trade.