"The Bretton-Woods Agreement of 1944 established the framework for the rise of the U.S. dollar and its status as the global reserve currency which has its obvious benefits for the US, but there are also numerous costs involved, according to Brandon Smith, who writes "Think of world reserve status as a "Deal with the devil. You get the fame, you get the fortune, you get trophy dates and a sweet car - for a while. Then one day the devil comes to collect, and when he does he's going to take everything, including your soul."
As much as 60% of all U.S. currency is owned outside the U.S. Global reserve currency status is what allowed the U.S. government and the Fed to create tens of trillions of dollars in new currency after the 2008 credit crash, all while keeping inflation more or less under control.
I suspect collection time is coming soon for the U.S. It may take the form of a brand-new Bretton Woods-like system that removes the dollar as global reserve currency and replaces it with a new digital basket system.
The IMF suggests that the XC platform would make the transition from legacy currencies to CBDCs easier for the various nations involved.
The old model of having a big military as a way to prop up your currency is dead. All the world's currencies, from dollars to Malaysian ringgit, would become nothing more than line items on the Universal Ledger.
2) Why have a reserve currency at all when all transactions are moderated under our ledger anyway? The dollar is no better for international trade than any other CBDC, right?
As much as our nation has benefited from global reserve currency status in the past, it will suffer equally as the dollar dies.
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