As a Russian who has to deal with foreign banks, I know first hand how far Fed went. Situation deteriorated even further recently...
@GrantDWilliams82
3 ай бұрын
We need to remember that the Dollar-era (post-Bretton Woods) is absolutely unique in human history. The *unbacked* Dollar-era (post-Nixon closing the gold window) is even more unique. People often say that there's been a "reserve currency" for centuries. Ever since the birth of (significant) global trade in the 15th Century. They say that the Spanish Peso was the reserve currency for awhile. Then the Portuguese Real. Then the Dutch Gilder. Then the French Franc. Then the British Pound. Yes, it's true that all of those had their hey day, but to compare their hey days to the Dollar's is wrong. The Dollar's share of global trade and reserve is so dramatically higher than any of those every had at their zeniths, that you are literally destroying the definition of "reserve currency" to compare them. All of those currencies only ever had a *plurality* of global trade/reserve status. The Dollar has a *majority* (and, for awhile, it had it by a long shot). Nothing like what's been seen post-WWII had ever been seen before. So once you understand that the last five centuries DID NOT actually have a "reserve currency", then the whole question of "what would be the Dollars replacement" becomes meaningless. There wouldn't be a replacement. The world did just fine when there was no single currency with as much dominance as the Dollar has had. ... Besides: even if you did concede that there has to be a currency as dominant as the Dollar is now, why does it have to be a fiat currency? All of those "reserve currencies" that preceded the Dollar had one thing in common: they were backed by (and often literally were) gold (or silver). Hell, even the Dollar was for the first ~33% of it's 80 year run. So if there absolutely MUST be a reserve currency that is as dominant as the Dollar is... there needn't be one... but even if there did need to be one, it doesn't have to be the Yuan, or the Euro, or the IMF's silly SDR's, or Swiss Francs. It can just be gold (and/or silver).
@garrettpatten6312
3 ай бұрын
yeah it sounds like Gold is the actual reserve currency.
@Kevin-ys7sj
3 ай бұрын
There is no dollar only the ghost of one, unless you can exchange a "dollar" for a troy ounce of 99.9 silver you don't have and by extension no one has a dollar! Stip perpetuating the lie! Otherwise good post!
@robertdlucas7418
3 ай бұрын
What is the real value of Bit coin? It is like fiat currencies dependent on society accepting that it has value. It is backed like fiat currencies by nothing.
@gb-dt3vk
3 ай бұрын
When the government uses sanctions through their domestic or even through foreign banking system, this is not capitalism because it takes away competition in the markets. As other countries realize that our concept of free trade is what we say it is , then this will bring about hesitation about holding US reserves.
@davidhemsted5372
3 ай бұрын
The appropriate unit of account is the troy ounce or the gram
@jimkozubek4026
3 ай бұрын
I signed up for Anatomy of the State, but never got a copy in the mail. I do get the Misesian.
@gingermon
3 ай бұрын
Best podcast in the business. Thank you Mises Institute!
@mrbmrb-fu7og
3 ай бұрын
Better Alternative and Hardest asset on the planet....BITCOIN!
@bridgetroll9
3 ай бұрын
it's because there is no money not that there is no better alternative.
@richardkut3976
3 ай бұрын
1968, L.B.J. took us off gold standard. Nixon just closed the window. $ still the prettiest mare in the glue factory.
@CTG2500
3 ай бұрын
A basket of currencies is the future which portends badly for the dollar….
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