- 07 Apr 2020 09:59
#15082436
Dollars are the reserve currency, which means other countries hold a lot of dollars. If China were to dump enough dollars, it would likely start a panic sell off of dollars.
Everyone would dump their dollars, which would instantly end our status as the reserve currency.
This would be very bad for the United States.
China doesn't want to go there, and we certainly don't want them to go there. But the stakes are really quite high.
Patrickov wrote:
I mean the United States still controls transport of oil around the world, not necessarily that they are primary supplier. Besides, I heard that refining technology and capacity are both very important matter too. Assuming these are true (sorry I did not bother to find proof), these are what US Dollar credibility is based on. Until all these having alternatives, dumping US dollar will not hurt the US at all.
Dollars are the reserve currency, which means other countries hold a lot of dollars. If China were to dump enough dollars, it would likely start a panic sell off of dollars.
Everyone would dump their dollars, which would instantly end our status as the reserve currency.
This would be very bad for the United States.
China doesn't want to go there, and we certainly don't want them to go there. But the stakes are really quite high.
Facts have a well known liberal bias