Loose Money Policies Risking Dollar’s Status

Without higher taxes, the government will need to continue borrowing money to fund its spending. Most of this is newly created money added to the system that devalues the money already in circulation.

This makes the dollar less attractive to investors and business people. But the dollar is considered the world’s reserve currency. It’s considered a reliable store of value, it’s used for international transactions, and other currencies tend to be denominated in it. But many experts worry that this reserve status is now at risk.

NTD asked the Tressis Chief economist Daniel Lacalle why reserve currency status is so important for the United States.

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