Very few people realize that the United States is responsible for all the dollars in the world, and these dollars are flowing back to the U.S.
Trump's global tariff war and the Sino-US trade war have accelerated this process - the global de-dollarization.
The reason why the U.S. economy does not collapse due to the excessive issuance of the dollar by the Federal Reserve is because the dollar, as the world reserve currency, flows globally, backed by the U.S. national credit. Since people trust the dollar for doing business, and with the prosperity of trade, more and more dollars are needed.
This is the fundamental reason why the excessive issuance of the dollar does not cause the U.S. to collapse.
When doing business with the U.S. becomes unreliable, reducing transactions with the U.S., and when U.S. credit collapses, those dollars become meaningless.
The paper dollars flowing around the globe are accelerating their return to the U.S.
This is why when a country's currency becomes the world reserve currency (WRC), it ultimately has to pay a heavy price.
We are now at this point.
- The collapse of an empire.
Trump's biggest mistake was thinking the whole world was taking advantage of the U.S., but actually, the excessive issuance of U.S. dollars benefits the world the most.
Original article: https://www.toutiao.com/article/1829266495186954/
Disclaimer: This article represents the author's personal views.