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Opinion – by Bruno COLMANT, M.Sc., Ph.D., CFA, Member of the Royal Academy of Belgium
Suppose there is one constant in U.S. monetary policy. In that case, the country never repays its debts in anything other than dollars, which effectively means they are never truly settled. This is the privilege of a nation that, for over a century, has imposed its currency as the universal standard and that, moreover, consumes more than it produces.
As a result, the rest of the world—meaning all countries except the United States—funds the American trade and budget deficit. This burden is significant, as U.S. public debt, although 75% held by American institutions, accounts for approximately one-third of global GDP.
But that is not all:...
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