Weekly Roundup 03/11/22 (Biden's executive order, Korea's pro-crypto President, Is Bretton Woods over?) (EP.296)
On The Brink with Castle Island
00:00
Is the Global Hedgemongering a Good Idea?
It's not a secret that china wants to displace the dollar system. Russia, after 20 14, also aggressively tried to de dollarize. But i don't think they anticipated the broad based g seven sanctions. And it does put the us in a tough spot because we do kind of need foreigners to buy our debt. That's why we've been able to issue so much debt at such cheap rates for so long. If they stop buying it, the fed just has to buy it all and kind of sterilize that issuance. So sovereign debt gets discredited as an f x reserve, basically.
Play episode from 08:49
Transcript
