Quantitative easing in the United States, because the dollar is the world’s reserve currency, forced our economic problems on those others holding dollars. (Nice trick if you can do it.)
Russia can produce as much money as they want. But the problem with the Soviets wasn’t that they couldn’t print money, they did. It was that nobody wanted the money. Everyone who could was surviving the Soviet catastrophe by bartering. That’s great, so long as you have something to barter. After a while what is left to barter?
Quantitative easing in the United States, because the dollar is the world’s reserve currency, forced our economic problems on those others holding dollars. (Nice trick if you can do it.)
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Those other countries did their own QE. Bernanke’s QE didn’t rely on anything elsewhere. It didn’t need to. When you have infinite money you needn’t care about elsewhere.
Oh and that 60 minutes interview, maybe not the one World Traveler guy means, but the interview with Bernanke. It became famous. Went like this:
So people are saying you’re just creating money.
BB: Of course not. We’re buying bonds. That’s all we’re doing. Buying bonds.
The interviewer moved on. Did not pursue it. AND THERE WAS RAGE. How could there not be a question . . . Where did you get the money you use to buy bonds? There has always been talk that this question was asked . . . and yanked.
Overall, when you have a central bank and are self sufficient in the stuff that matters like oil, gas and food, you can’t collapse. The internal society will percolate just fine.
It’s a substance created from nothingness. It doesn’t have to make sense, but oligarch types and senior types in the Admin dare not ever accept this.