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"foreign governments liked holding their reserves in US dollars" Yes every government has to keep dolar reserve because this is the only currency you can buy o
by piokoch 14y ago
"foreign governments liked holding their reserves in US dollars"
Yes every government has to keep dolar reserve because this is the only currency you can buy oil with. USA managed to force oil suppliers to accept only US dollars.
This is the source of the dollar power and enable FED to print as much dollars as they want. People all over the World must purchase dollars.
- indiecore 14y agoOk why do foreign governments also hold Euros, British Pounds, Chinese Yuan, Japanese Yen and Canadian Dollars as reserve currency? You're tinfoil hatting bit too hard here man.
- rjknight 14y agoMinor snark, but 'the Fed', as in 'The Federal Reserve Bank of the United States of America' is an abbreviation, not an acronym. If you really want to use a TLA, 'FRB' (Federal Reserve Bank) might work, but 'FED' is meaningless. This undermines the credibility of your pronouncements on monetary economics.