What exactly does "world reserve currency" mean? Why is everything that can be bought by US dollars backed by the US dollar?
All currencies are just assets that can be bought by US dollars.
Are there any alternatives to having a world reserve currency?
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It means that is what you have to have in your pocket to be able to buy barrels of crude oil on the petroleum exchange.
Saddam decided he would accept euros for selling his oil after they decided he could sell oil.
Now just how well did that work out for him?
Quaddaffi decided he would make a african currency based on gold to use on the continent for trade amongst african nations.
And how did he fare after he tried this little shenanigan?
Please stop being so toxic.
Are you silly in the head? People can just buy euros and and gaddafi coins with their US dollars. It doesn't matter if someone boycotts the US dollar
If they ban the exchange of their currency into US dollars you just buy some other asset and then trade it for the currency that you want to buy crude oil with
yes, individual deals between parties, buying stuff in Euros, in Rubles, in Renminbi, whatever
but for burgerland, these alternatives mean the US$ falls, which means nobody wants US$ financial assets anymore, which means the US debt can't be serviced/created anymore, which causes the $ to collapse harder, hyperinflation, economic Armageddon, Ragnarok up in your Israel, the whole shebang
Are you? He answered your rather simple question. No need to be an asshole.
Are you samefagging? Your answer was psychotic and not informative at all
it's not the boycot of the US$ that's the problem
it's allowing exchanges in anything else than the US$
nobody does that for international ressources exchange
your point of vies is exclusively from burgerland
thing more international, if you're from Elsewhereistan, your money-thing can be used directly to buy stuff from Bumfuckistan without needing US$ that you had to get by selling your stuff to the (((rest of the world)))
*point of view
The world reserve currency will always be the one that is backed by the most powerful army.
*the world's largest economy
You can't have a powerful army without a powerful economy and you can't get people to accept your currency with arms alone. There needs to be stuff to buy. So, it's a combination of army & economy but it is more important to have a large economy.
An easily movable, commonly accepted means of exchanging value?
That's faggot Reddit talk. You must go back, hippy.
If OP actually cared to know, he'd read something, instead he makes a thread which is how you know Shlomo the jidf tranny with autism is sliding something.
Curious about that as well. "Reserve currency" is one of these buzzwords that get thrown around a lot but which are never clearly defined or explained.
1. Lurk more.
2. Stop being from reddit.
3. Gold.
soyboy detected
Muh shiny metal
Countries have foreign reserves, maintained in various currencies. So, if Ecuador’s currency falls dramatically relative to the Swiss franc, Ecuador could still import essential Swiss goods (watches and chocolate?) at least for a while if they have Swiss francs as part of their reserves. Most countries keep a healthy dose of USD. With the USA government debt, and loss of USA manufacturing, the whole thing now looks like a farce.
So instead of answering the question you just try to shut it down? How do people learn if not by asking questions and receiving answers? Do you not see how you are perpetuating the image of a hugbox?
I mean I dont either but at least I dont pretend.
This post isnt even meant to be taken seriously.Its just posted as a flag for mods to know which threads to remove because they give the hugbox a black eye