"Since the US is deep in debt, nationally and internationally, the dollar’s value depends entirely on the fact that it is a reserve currency for other nations. We all have to keep reserves in dollars for two reasons. First, by an agreement made in the 1940’s, the oil producing countries of OPEC agreed to sell oil only in dollars. That meant everyone had to hold dollars if they wanted to buy oil, resulting in two-thirds of all central bank reserves being in dollars. That in turn means that the Americans have the privilege of producing the international currency. Creating money is nice work if you can get it. It is the equivalent of having a mint in your backyard. You can buy what you want with the new money, without having to supply the equivalent value of goods. America has been financing its annual deficit with the rest of the world – it borrows over $2 trillion a day - by simply making new money and spending it into circulation."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Imported from EN Wikiquote
https://en.wikiquote.org/wiki/Margaret_Legum
Revision History
No revisions have been submitted for this quote.
Categories
Margaret Legum
Margaret Jean Roberts Legum (8th of October 1933 Pretoria, South Africa – 1 November 2007, Cape Town, South Africa). She was a South African/British anti-apartheid activist and social reformer, who specialized in economics.
7 quotes on TrueQuotesView all quotes by Margaret Legum →
Related Quotes
"What are we to make of the growing chorus of fears about the possible collapse of the dollar? Is it a case of crying …"
"They will not be able to do that if we no longer have to buy our oil in dollars. Its value would fall as nations swit…"
"What is the evidence for the possible imminence of this scenario? Associated Press on May 5 quoted top Wall Street an…"
"Gold is now at a 20-year high against the dollar, and the dollar at a one-year low against the euro. The Financial Ti…"
"At the opening of the IMF meeting on April 21, Russia’s Finance Minister said his country ‘could not consider the dol…"
"At that IMF meeting the 2006 World Economic Outlook was launched, warning of a dollar collapse – due to global trade …"
"People who are immunocompromised face greater risks of adverse outcomes from infection with SARS-CoV-2."
"Dance is poetry because its ultimate goal is to express feelings, even if through a rigid technique. Our task is to c…"
"There was once a word that I am proud of and that is part of my childhood: proletariat. Unfortunately, no one uses it…"
"I had extraordinary encounters, such as Visconti, gruff and very sweet. Like Herbert Ross, for whom I played Karsavin…"