After listening to a lot of Peter Schiff and Stefan Molyneux, I've heard a lot of statistics and figures about how America's economy is declining. The statistics I'm referring to is the declining labor force participation rate, number of people collecting government assistance, and ratio of part time and full time jobs to the total jobs. As I've talked with older conservative men, they have the same opinions. One thing, I kept hearing repeated is that America cannot fall from grace for one simple reason.
Every other country is doing worse than we are.
Great, this is what I have to be proud of?
Still, I didn't know what this meant. If every country is doing awful, why is it good for America if the other countries are just terrible. I was told that America has the world reserve currency. All I really knew about that was that other countries used our dollars to buy stuff from other countries.
But, in the last few days, Cappy wrote this post with an explanation of why the world reserve currency gives American such power. Read this if you haven't already.
This is the first time I've heard a decent explanation of why world reserve status is so important to America. If I understand correctly, America doesn't just own America. America owns the world. This is why I keep reading Captain Capitalism.
I write this post mostly for myself. I know that eventually I will forget this explanation and I want to have it in my blog record to I can come back to this. His explanation is really good.
Now if America were ever to lose world reserve status....
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