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trhway 3 days ago

If the US gets invested with such "virtual" ("out-of-thin-air", newly issued, etc.) dollars i guess it would be even worse as it would only inflate prices in US while not doing anything else.

Yoric 3 days ago | parent | next [-]

Maybe?

What we're discussing is clearly beyond my ability to grasp (macro-)economics.

overfeed 2 days ago | parent | prev | next [-]

Being the biggest reserve currency has a little-discussed perk where the reserves lower the average velocity of money, which blunts the inflationary pressure of money-printing. Eroding trust in the US will deplete these deep pools of USD and will result in a more direct linkage with domestic inflation in the future.

sharpshadow 2 days ago | parent | prev [-]

It is inflating prices but also doing a lot more contrary to nothing.