This video starts with discussion of Realpolitik, evolves into description of the Fed's role in providing central bank dollar swaps, and then moves back to Realpolitik interpretation:
This relates to what I said recently about prevailing international trade patterns being unsustainable in a counterfactual world of pure market forces. China has used the currency peg to the dollar to gain technology transfer and know-how for its rapid industrialization. The United States has issued debt in part to keep the banks in China, US, and global FX markets from changing the persistent trend of US deficits and accumulating debt. The refusal to provide liquidity for domestic and international trade could under some future conditions induce a global great depression due to the networked patterns of international trade breaking down for lack of refinance provided by the United States via what I call the Fed-Treasury Battery.
Joe