No matter how much Fed prints, USD will not depreciate or lose value wrt to other currencies particularly the developing countries.
The Fed doesnt print US Dollars.
In fractional reserve banking, only commercail banks can create the currency through loans. Central Bank reserves (liabilities) are not legal tender. Hence, they are financial products for depository institutions that are pegged to the currency, in this case the USD. They are not broad economy money.
They also cannot be converted to "digital dollars". The banks could swap them out for banknotes but that would means getting the notes, storing them, and distributing to the population. At the same time, they are useless to banks because no settlement takes place in physical currency.
Hence the understanding of the international economic order is skewed wrongly since this fundamental concept is overlooked.
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Great details.
Thank you for schooling me. Engagement really widens the perspective and sometimes strengthens the fundamental concept by cutting across loosely defined things. Thank you again.
I agree. That is the power of Leofinance. We share what knowledge we have.
When it comes to money, sadly, there is a lot of BS out there, especially on Twitter and the like. Many have a worldview that is based upon fallacy simply because people repeat the same untruth over and over.
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