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I would say that the dollar being the global reserve currency is a unique privilege, yes.
by terribleperson 1y ago
I would say that the dollar being the global reserve currency is a unique privilege, yes.
- WalterBright 1y agoIt's a result of American prosperity, not the cause.
- terribleperson 1y agoReal life is rarely as simple as discrete causes and effects. The dollar being a reserve currency is the result of both advantaged position America was in at the end of WWII combined with subsequent economic policy. Economic policy alone would not have resulted in the powerhouse America became, and it certainly could have squandered its post-WWII position with bad policy. The dollar becoming the reserve currency has given America a lot of power, however. It certainly is a factor in the way America is able to run a trade deficit and yet still benefit.
- WalterBright 1y ago> Economic policy alone would not have resulted in the powerhouse America became During WW2, the US was the most powerful economy in the world. It fought WW2 in both hemispheres (which required two navies), and supplied all the allies. Japan was well aware they could never win a sustained war with the US, and hoped that the attack on Pearl Harbor would get them a negotiated settlement. Hitler, in probably the stupidest miscalculation in history, declared war on the US.
- TeaBrain 1y agoYou are getting two things confused here. The original question was what privileges the US had that others do not. The USD being the reserve currency is unquestionably a privilege. That it is not the original cause of American prosperity is completely besides the point.
- WalterBright 1y agoOh, it's exactly the point.
- TeaBrain 1y agoYes, it does happen to be a point, but it's completely besides the point of the subject in question existing as a privilege in the current day.