Podcasts: Triffin Dilemma: Quick Part 2 - E227 🔗 3 years ago
- Category: Podcasts | Bitcoin & Markets
- Author(s): Ansel Lindner
- Published: 15th March 2021 20:51
I quote heavily from Lyn and the BIS in this episode, drilling down the essense of the problem with the premise of deficits being the basis for foreign reserves of the dollar. Short answer, they aren't. There's very little evidence that deficits matter to foreign reserves at all, or that they play more than a very small role. The single most important source of foreign reserves is the eurodollar market.
If we clear our minds of the role of deficits, then what is the argument for the unsustainability of the USD system? Well, it boils down to the end of a gigantic global credit bubble enabled by the Pax Americana.
Hope this helps clarify.
Stay tuned for the next episode on NFTs and fungibility. It will be a satisfying episode.
A
Links
The Fraying of the US Global Currency Reserve System - Lyn Alden
Why Trade Deficits Matter - Lyn Alden
BIS Report - Triffin: Dilemma or Myth?
BIS Report with my highlights
