From Seeking Alpha
By Plan B Economics
''Dollar reserves around the world have relentlessly risen for decades,
putting pressure on a one-sided system created by a global dollar-regime
that is enforced financially, legally and militarily. This
'petrodollar' system (a system that forces oil producing countries to
sell oil in US dollars, effectively forcing oil importing countries to
build dollar reserves) has reinforced the imbalance by propping up the
dollar and suppressing US interest rates, allowing the US to run what
would otherwise be disastrous monetary and fiscal policies. The US has
little incentive to right the world financial system as it has enabled
the US to finance the worlds largest army, a welfare state and a
consumption-driven economy.''
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