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Xcsler's avatar

I don't buy part 1 of Triffin's Dilemma that the US needs to supply the world with dollars. Supplying the world with 1 trillion dollars does the same job as supplying the world with 10 trillion dollars. The only difference would be in the price levels. The US supplies the world with dollars not to benefit and lubricate global commerce but rather to benefit the first recipients of those dollars via the Cantillon Effect.

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Jeremy Jones's avatar

Yes but in aggregate it has to be more than what other countries debase their currencies.

I.e the yuan dollar peg that has allowed China to grow at a rapid clip.

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