US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments
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US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments
Unofficial Hacker News client; not affiliated with Y Combinator.
Arubis · · focus · HN ↗
It's not without its benefits -- over the last couple decade, the US has found ways to weaponize access to USD, so if you're not a fan of having a country other than your own able to effectively regulate or sanction you and your business, there's some niceties here.
Being able to trade and invest in a stable, highly liquid, easily converted, low risk currency was a net win for most of the world for about half a century. There isn't an obvious replacement, so we'll just see more friction.
upboundspiral · · focus · HN ↗
The different blocs could already start experimenting with this: the Euro could be used for currency exchange within partner nations while bringing back national currencies, BRICS could setup their own currency for trade between themselves, etc.
These problems are not new, they were the same questions we had post WW2, and some good ideas from that era may have been squashed by the ruling power of the time (namely the US), but their merit remains.
<a href="http://www.sofer.com/blog/keynes-on-the-balance-of-trade.html" rel="nofollow">http://www.sofer.com/blog/keynes-on-the-balance-of-trade.htm...
<a href="https://www.weforum.org/stories/economic-growth/yanis-varoufakis-imagining-a-new-keynesian-bretton-woods/" rel="nofollow">https://www.weforum.org/stories/economic-growth/yanis-varouf...