US Dollar - World Reserve Currency

[Joe Leote]

Richard Murphy describes the role of the dollar as the world reserve currency:

Trump doesn't understand the advantage the USA enjoys by issuing the world's reserve currency

Stephane Kelton, a proponent of MMT, argued persuasively, several years ago, that Trump does in fact understand the capacity of the United States to issue debt as a tool of government policy. This is why everyone who wants to extract economic rent via government policy wants to lobby, influence, or capture the government in Washington. If a political faction wants the United States to operate more like a Sovereign Wealth Fund then the government would have to purchase and hold private assets, or public assets of other nations, denominated in dollars and other currency units. That might destroy the value of the dollar used as the world reserve currency. Oil exporting countries invest the dollar profits via Sovereign Wealth Funds and the United States issues the dollars as the difference between receipts and outlays via the many federal government agency balance sheets consolidated at Treasury.

Changing subjects, California is a dominant economy in the world with many corresponding problems and advantages:

https://youtu.be/O4U1y5ymEEc

Joe