3 ms·
Sanctioning power comes from dollar primacy. When the whole world settles transactions in your currency then you have the power to switch off other countries fo
by alangibson 1y ago
Sanctioning power comes from dollar primacy. When the whole world settles transactions in your currency then you have the power to switch off other countries foreign exchanges pretty easily.
The dollar has been in steady decline since the late 70's. As it's share of reserves drops, do goes the effectiveness of sanctions.
- hintymad 1y ago> Sanctioning power comes from dollar primacy My worries is what sustains the dollar primacy. If the US can't make what's even essential for the nation, I'm curious how other nations will want our so-called services.
- alangibson 1y ago> My worries is what sustains the dollar primacy Manufacturing was never part of the equation. It's somewhat ironically because of the trade deficit. Running a deficit blasts dollars out into the world. Countries put those dollars back in US banks and buy US treasuries as their reserves (hence the dollar as a reserve currency). It's maybe the best economic deal any country has ever gotten, and the US is in the middle of blowing it all up.