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Why The World Can't Default On US Dollar Debt
People think that if countries defaulted on their dollar obligations, the demand for dollars would be destroyed. However, this would also destroy assets and supply because loans and investments are interconnected. Additionally, Eurodollar credit is denominated in dollars but is owed to entities outside of the US. If these credits or liabilities get defaulted on, it would result in the rest of the world defaulting on themselves.
Watch more of this short video from Is The US Dollar REALLY In Danger? Maybe Not | Brent Johnson.
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