Many explanations I read come down to “almost everyone uses the dollar in international trade”, ” almost all energy is invoiced and paid in dollars” and “almost all international financial flows go through NY one way or the other”, but that just seems a restatement of the fact that the dollar is the reserve currency of the world. My question is: why? How did it end up that way?
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It used to be, with the growth of Brics there is no global reeserve currency at the moment. Why it became so, because ww1, and ww2 had almost zero affect on mainland america, so they continued development and grew a stable economy that the war torn world used to back their currencies and investments. It was all great, until world trade organizations and US empire didnt start using the dollar as a weapon to keep itself as number 1, so now there is no more global reserve currency. USD is still considered a reserve for the western alliance though. For the time being.
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