Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (281474)	11/15/2020 8:35:33 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 281500

You are only partially correct. There are advantages that are afforded to the nation that prints the reserve currency. The other part is that as time goes by, the advantages diminish - mostly because the nation tends to piss it away like a kid that has too much time on his hands and doesn't know what to do with it. USD being the reserve currency is what has allowed the US to rackup so much stupid debt. Without it America would have shown better fiscal responsibility. The advantages also diminish in relative terms because the rest of the world moves forward and catches up. Nor are the advantages completely one sided. The reason USD appreciates in value every time there is a global crisis is because the people in LatAm and developing nations trust the US government more with their money than they trust their own government. In return, and this is not due to the kindness of their heart but out of necessity, the Federal Reserve takes the USD denominated foreign debt and the impact on other markets into account as it makes up its own policy. Having the reserve currency has certainly allowed the US to expand and maintain its empire. But empires are inherently dumb idea and not worth the headache. But somehow nobody seems to get that lesson from history. No country seems to have enough self control to know when enough is enough and always engages in world gluttony and suffers the consequences of having to run an unwieldy empire.