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How the world works on Dollars.
The single most trusted dominant currency is the US Dollar. It is a requirement for all financial transactions whether its Euro, RMB, SEK, or Yen. There is only one source and that’s the US Fed selling USTs to the world.
The single most trusted dominant currency is the US Dollar. It is a requirement for all financial transactions whether its Euro, RMB, SEK, or Yen. There is only one source and that’s the US Fed selling USTs to the world.
When a country such as China wants to import-export goods, they must buy Dollars to enact transactions.
“But what if Sweden and Japan trade???”
Again, you’re not listening. The Dollar is REQUIRED for all transactions under the covers because the US Dollar is the most liquid.
Only the US can run such deficits that allows global trade to operate smoothly.
Again, you’re not listening. The Dollar is REQUIRED for all transactions under the covers because the US Dollar is the most liquid.
Only the US can run such deficits that allows global trade to operate smoothly.
“But why is the dollar so powerful?”
Simple. Post WW2, there was only 2 powers left. The US & Soviet Union, which went on a global rampage to acquire territory, secure resources, and dominate supply chains. The US won and the Dollar became sole reserve currency. Trust & politics
Simple. Post WW2, there was only 2 powers left. The US & Soviet Union, which went on a global rampage to acquire territory, secure resources, and dominate supply chains. The US won and the Dollar became sole reserve currency. Trust & politics
“What about China?”
China has a LONG term plan to replace the $ called BRI. It’s intent is to secure resources to feed its population and industrial sectors, economics and military interests. They still need roughly 62% of their foreign reserves in $USD to keep the RMB stable.
China has a LONG term plan to replace the $ called BRI. It’s intent is to secure resources to feed its population and industrial sectors, economics and military interests. They still need roughly 62% of their foreign reserves in $USD to keep the RMB stable.
“What about the Euro??”
The ECB is broke. Plain and simple. They need liquidity injections routinely to avoid total collapse of the Euro. 2012 EU bank crisis had ECB leaders beg the US Fed for $2 trillion. This was used for their junk bond buying purchase to prop up the economy.
The ECB is broke. Plain and simple. They need liquidity injections routinely to avoid total collapse of the Euro. 2012 EU bank crisis had ECB leaders beg the US Fed for $2 trillion. This was used for their junk bond buying purchase to prop up the economy.
“What about Bitcoin???!”
Ah, my recent favorite targets. Charlatans like @MarkYusko and misguided ideologues like @LukeDashjr understand NONE of this thread. Bitcoin needs fiat conversion, access to govt regulated internet, and govt approval for exchanges to operate.
Ah, my recent favorite targets. Charlatans like @MarkYusko and misguided ideologues like @LukeDashjr understand NONE of this thread. Bitcoin needs fiat conversion, access to govt regulated internet, and govt approval for exchanges to operate.
To replace the Dollar, a currency needs to be at the core of product creation(which btc is nowhere near), issuing authority securing supply chains, and politically entangled with decision-makers. Baristas and Social Justice warriors are not at the top of the food chain.
“Gold! That’s the Dollar weakness..”
A wise man told me: “Gold makes logical people illogical”. Gold, oil, commodities are used today to arbitrage trade to gain or retain dollar value. You can’t move gold, there are zero transparent audits of gold, lacks trust for trade.
A wise man told me: “Gold makes logical people illogical”. Gold, oil, commodities are used today to arbitrage trade to gain or retain dollar value. You can’t move gold, there are zero transparent audits of gold, lacks trust for trade.
Without a logical alternative that can substitute the dollar concerning military superiority, trust, liquidity and political economics.... the Dollar will be the reserve currency for the foreseeable future.
