Reply To: Bond vigilantees and political power

[samgheb]

Thanks, I will try to look those books up

Is it correct to say that in the post-Bretton Woods system, the American welfare-warfare state can “export” their costs because Asian economies want their currencies pegged to the dollar so as long as the Asian states maintain this policy, the costs can be shifted away from Americans?

And a related question, is it fair to say that without this system America would not realistically be able to maintain current expenditures because a) American’s wouldn’t want to pay the taxes needed to replace the inflation and b) America wouldn’t be able to borrow as much since their current borrowing is predicated on America having the reserve currency