Money is political. Recent sanctions and geopolitical events contributed to today’s shifting winds in the desirability of transacting in US dollars.
While swap rates are a positive development, a better solution would be something like the SDR.
Like you’ve explained in your book on money, money is an IOU. It’s build on faith.
For international commerce, it makes sense to build an international IOU. Wouldn’t Xi’s and Putin’s efforts to shift away from the dollar be more successful if they went the route of an international IOU?
I think it would benefit them more and simultaneously all other nations. The issue is that no leader wants to give up that much power.
Some international democracy would be required. That’s a tall order for the US (much less Xi and Putin).
Until we put in an international political framework, international debt settlement will be a game of the most credible IOU.
Money is political. Recent sanctions and geopolitical events contributed to today’s shifting winds in the desirability of transacting in US dollars.
While swap rates are a positive development, a better solution would be something like the SDR.
Like you’ve explained in your book on money, money is an IOU. It’s build on faith.
For international commerce, it makes sense to build an international IOU. Wouldn’t Xi’s and Putin’s efforts to shift away from the dollar be more successful if they went the route of an international IOU?
I think it would benefit them more and simultaneously all other nations. The issue is that no leader wants to give up that much power.
Some international democracy would be required. That’s a tall order for the US (much less Xi and Putin).
Until we put in an international political framework, international debt settlement will be a game of the most credible IOU.