A country whose currency is accepted globally and in which many internationally traded goods are valued – such as the USD – faces either – rampant money creation or – a steadily increasing current account deficit. – The users of such a globally accepted means of payment enjoy the advantage that instead of knowing the grand total of the exchange rates of all their trading partners, they only need to know that of their own country to the generally accepted currency – i.e. currently the USD. This is because world market prices, especially for oil, agricultural commodities or metals, are quoted in this currency. But the holder country of this means of payment – i.e., currently the U.S.A. – must not only supply itself monetarily, but also third countries.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/