![](https://i.imgur.com/CLvY2jA.png")
22-11-2022, 02:38 PM
8/11/2022
If the USD was any other currency, it wouldn't be possible. The other currency would have been devaluated significantly and inflation would have spiraled out of control. But unlike any other currency, the USD has the power of:
There will always be demand for the USD and this allows the U.S. to export inflation to other economies that requires the use of the USD for trade or as their own Reserve Currency. As long as there is a demand for the USD, the strength of the USD empowers the U.S. Federal Reserve to continue down this path they took ever since the 2008 financial crisis. Taking on more federal debt and firing up the printing press to fund fiscal expenditures and bailing-out the economy.
But in the recent years, the share of US dollar reserves held by central banks fell to 59 percent—its lowest level in 25 years—during the fourth quarter of 2020
......
In the latest sign the dollar-centric global financial system is under immense strain, China and Saudi Arabia have “accelerated” ongoing talks to price oil contracts in yuan instead of greenbacks
......
To conclude, what this all means is that the Federal Reserve might not be able to repeat what they did in the 2008 financial crisis.
https://www.edenhuang.com/invest_blog/ca...ey-forever
If the USD was any other currency, it wouldn't be possible. The other currency would have been devaluated significantly and inflation would have spiraled out of control. But unlike any other currency, the USD has the power of:
- The Reserve Currency Status
- The Petrodollar Agreement
There will always be demand for the USD and this allows the U.S. to export inflation to other economies that requires the use of the USD for trade or as their own Reserve Currency. As long as there is a demand for the USD, the strength of the USD empowers the U.S. Federal Reserve to continue down this path they took ever since the 2008 financial crisis. Taking on more federal debt and firing up the printing press to fund fiscal expenditures and bailing-out the economy.
But in the recent years, the share of US dollar reserves held by central banks fell to 59 percent—its lowest level in 25 years—during the fourth quarter of 2020
......
In the latest sign the dollar-centric global financial system is under immense strain, China and Saudi Arabia have “accelerated” ongoing talks to price oil contracts in yuan instead of greenbacks
......
To conclude, what this all means is that the Federal Reserve might not be able to repeat what they did in the 2008 financial crisis.
https://www.edenhuang.com/invest_blog/ca...ey-forever
