I guess I overall don’t understand entirely how currency works… that is, why is the US dollar the “reserve currency” for several nations and why would BRICS challenge that? And finally, what effect would that have on the US.
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The reason the US government can just endlessly print money is because the money is not just backed by the wealth of the United States, because oil can only be bought and sold in dollars in most cases it’s also backed by the oil wealth in the world, countries want the currency so that they can do trade. If countries no longer need the dollar, and view things like the yuan as a safer currency to do the deals with, noone will want the dollar any more. Supply and demand, the value of the dollar goes bye bye. Obviously this won’t happen overnight and dollars will still be desired as a reserve currency, but not in the same quantity it once was.
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