ikidd comments on Power balance

[–] ikidd@lemmy.world 16 points 9 months ago (5 children)

If Trump gets his wish and co-ops the Fed, they might as well start dumping USD. It's going to be on a wild ride after that.

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[–] TranscendentalEmpire@lemmy.today 3 points 9 months ago (4 children)

I would be skeptical of them "dumping" anything, but they probably would start to slowly diversify their reserves.

Right now there isn't exactly a replacement other than gold, but that's really impractical as a replacement for the bond market.

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[–] corsicanguppy@lemmy.ca 3 points 9 months ago (3 children)

there isn't exactly a replacement other than gold,

If only there was another currency used by a number of different countries.

What does France and Germany use? Can England back their pounds on the franc?

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[–] TranscendentalEmpire@lemmy.today 2 points 9 months ago (2 children)

What does France and Germany use? Can England back their pounds on the franc?

Are you asking if the EU can use the euro as a reserve currency?

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[–] corsicanguppy@lemmy.ca 1 point 9 months ago (1 child)

I think I am, in the same way America uses its own currency. It's working for them; until this years potential collapse, I mean.

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[–] TranscendentalEmpire@lemmy.today 1 point 9 months ago

America doesn't use their own currency as a foreign currency reserve. They really don't have much of a need for a foreign currency reserve as they have historically had a relatively stable currency and a lot of partners who are more than willing to trade in USD.

The US has around 30-40 billion in reserve currency while the EU has somewhere between 300-400 billion.

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