"...because the US government is believed to be highly unlikely to default."
And that belief stems largely from the status of the US as the sole superpower (at least for now). That's the point I was trying to make. I just didn't do a very good job of it.
I probably should have just picked an example of the US exercising diplomatic power, because that's much more intuitive to me than currency markets are.
>> "...because the US government is believed to be highly unlikely to default."
> And that belief stems largely from the status of the US as the sole superpower (at least for now). That's the point I was trying to make. I just didn't do a very good job of it.
US currency got its current "highly unlikely to default" status before it was the sole superpower so it's unclear how that status "stems" from being the sole superpower.
Comments
"...because the US government is believed to be highly unlikely to default."
And that belief stems largely from the status of the US as the sole superpower (at least for now). That's the point I was trying to make. I just didn't do a very good job of it.
I probably should have just picked an example of the US exercising diplomatic power, because that's much more intuitive to me than currency markets are.
(Thanks for patiently correcting me, by the way.)
>> "...because the US government is believed to be highly unlikely to default."
> And that belief stems largely from the status of the US as the sole superpower (at least for now). That's the point I was trying to make. I just didn't do a very good job of it.
US currency got its current "highly unlikely to default" status before it was the sole superpower so it's unclear how that status "stems" from being the sole superpower.