> Sanctioning power comes from dollar primacy
My worries is what sustains the dollar primacy. If the US can't make what's even essential for the nation, I'm curious how other nations will want our so-called services.
My worries is what sustains the dollar primacy. If the US can't make what's even essential for the nation, I'm curious how other nations will want our so-called services.
Manufacturing was never part of the equation. It's somewhat ironically because of the trade deficit. Running a deficit blasts dollars out into the world. Countries put those dollars back in US banks and buy US treasuries as their reserves (hence the dollar as a reserve currency).
It's maybe the best economic deal any country has ever gotten, and the US is in the middle of blowing it all up.