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Warren Buffett: “We’ve got the right to print our own money. That’s the key.”
That’s only half of the key. The other half is that US dollars are negotiable worldwide. If this were not the case, then the USA would be suddenly worse than Greece, since the USA has the world’s biggest trade deficit.
Having the world's biggest trade deficit and the worldwide negotiability are almost the same thing. They can't be separated that way.
If the US is rational, as it has been for the centuries since the Revolution and does not incur foreign-denominated debt, then its trade or CADs are denominated in dollars and therefore their mere existence implies worldwide negotiability of the dollar.
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Warren Buffett: “We’ve got the right to print our own money. That’s the key.”
That’s only half of the key. The other half is that US dollars are negotiable worldwide. If this were not the case, then the USA would be suddenly worse than Greece, since the USA has the world’s biggest trade deficit.
Stephanie Kelton: “I can’t tell whether I’ve convinced everyone on Twitter.”
I doubt it. Most people are not convinced by logic, proof, or evidence. Most people believe whatever they emotionally want to believe.
Having the world's biggest trade deficit and the worldwide negotiability are almost the same thing. They can't be separated that way.
If the US is rational, as it has been for the centuries since the Revolution and does not incur foreign-denominated debt, then its trade or CADs are denominated in dollars and therefore their mere existence implies worldwide negotiability of the dollar.
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