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Jul 25, 2023Liked by Steve Keen

Any relative analysis of a national economy vis-a-vis the U.S. economy that does not discuss the U.S. dollar, as the reserve currency of the world, is incomplete.

The U.S. can play fiat games and do so nearly indefinely. Other countries can't. In point of fact, absent sustained and profound inflation, the U.S. has little to do but cash the check on 200 bps of currency spread to clear world GDP for the foreseeable future. A tidy couple trillion annually coming out the chute to play world banker.

That's the reward for ending forced labor and winning a world war. To the victor go the spoils.

Leadership wins.

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