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0 pointsquickthrower24y ago0 comments

I take the post as the US dollar becoming more scarce but not running out.

If OP is right I don’t see the federal reserve acting to bail out China.

They might happen to do QE for another reason but not to help out other countries with their problems.

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As the bank of the world's reserve currency the Fed is always implicitly running a world bank. The transmission mechanism is for foreign currency to depreciate against USD which causes US domestic financial conditions to tighten, and the Fed would then have to loosen.

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