DrJLT Economics: The Fed's Money Cannon and Global Inequality E002

The reserve currency status of the USD has several global consequences for us outside the US:

1. The US "trade deficit" is a reflection of the export of USD (and inflationary pressure).
2. Creating USD out of thin air is a form of taxation on the wealth of everyone outside the US through inflation.
3. This "Money Cannon" is a form of neocolonialism.

Still, every empire that has implemented "Modern Monetary Theory" in history has quickened its demise. While the USD's status can hardly be challenged at the moment from outside, it is the abusive use of the money cannon that will eventually lead to its fracture.

More of my work at https://drjlt.com, https://neofiliac.com