News for hackers. Stuff that matters.

A comment on The .Org Fire Sale: How it sold for less than half its valuation. Parent comment

Re:The .Org Fire Sale: How it sold for less than half its va... by beiz on Tuesday December 03, 2019 @04:08PM (#21696715)
the whole war in the middle east has been because the euro was about to become the new reserve currency, everyone, including china, was on board of this move - everyone, except the US. this is after the fact that nixon burned all of europe's gold in the vietnam war, the gold, which was supposed to balance the dollar. so yes, the current fallback is the US bonds but it isn't stable and the only reason the US maintains this system is because they fucked up.

so yeah, i don't buy it. the US isn't 'saving the world' by holding the dollar as a reserve. the entire US economy is hanging on by a thread and would collapse if they lose the global trade commission on dollar.

[ Parent | on HN ]
Re:The .Org Fire Sale: How it sold for less than half its va... by rsj_hn on Wednesday December 04, 2019 @01:37AM (#21700110)
This is pure nonsense. You might as well that the person who is the biggest creditor is the same as the biggest debtor via some horseshoe theory of finance. The Euro can't be a reserve currency because the Eurozone cannot support large capital inflows, which is because Germany is dependent on having an export based economy. Seriously, you are confusing plus with minus, addition with subtraction. To be an issuer of reserves requires that you allow foreigners to run surpluses against you. Thus no currency zone that requires running surpluses is going to be a reserve currency as long as plus is not the same as minus.
[ Parent | on HN ]