Uh, no, not really, I don’t think the reserve currency makes China subservient to us in any way, shape or form. It’s not like the US can somehow remote control the dollars in distribution out in the world, or somehow control who gets them and who doesn’t. Under our capitalist system, anyone can get their hands on some if they really want. There’s also nothing really stopping them from buying a bunch of Euros too, and honestly, they probably have a bunch of those in savings as well. And some Japanese yen, Korean won, etc etc etc, alongside gold and everything else under the sun. That’s just smart diversification of assets.
Being the global reserve of preference for everybody does confer a certain advantage in ease of trade, but it’s really overblown. It’s not like the Euro or Yuan is some worthless scrap of paper nobody wants. It definitely doesn’t confer any sort of control.
To a certain financial extent, the rest of the world is subservient to the reserve currency.
Uh, no, not really, I don’t think the reserve currency makes China subservient to us in any way, shape or form. It’s not like the US can somehow remote control the dollars in distribution out in the world, or somehow control who gets them and who doesn’t. Under our capitalist system, anyone can get their hands on some if they really want. There’s also nothing really stopping them from buying a bunch of Euros too, and honestly, they probably have a bunch of those in savings as well. And some Japanese yen, Korean won, etc etc etc, alongside gold and everything else under the sun. That’s just smart diversification of assets.
Being the global reserve of preference for everybody does confer a certain advantage in ease of trade, but it’s really overblown. It’s not like the Euro or Yuan is some worthless scrap of paper nobody wants. It definitely doesn’t confer any sort of control.
Any other thoughts?
I’ll stop there since you haven’t said anything to discount my points.