The value of the FRN or EURO is dependent on taxpaying. Think about this. Let us assume, hypothetically, that the FRN can no longer be used to pay taxes in the US. Would the FRN - exchange rate with the Euro change? I bet you it would, for the simple reason the domestic requirement to have FRN is no longer there.
If the requirement to have FRN in order to buy oil no longer is enforced. Will the exchange rate with other currencies change? Of course it will, depending on how large the movement will be from FRN-payments to other payment solutions. The same goes for the tendency in times of struggle to onshore value in FRN in bonds and stock.
Between these two, the international dimension and the national or domestic dimension are used to make a price discovery. So, even though a reserve status may be lost, and therefor, no longer can inflation be exported to other countries in the same manner as before, before it comes to the point of destruction, it will be subjected to a process of restructure.
I would say though that having CCP within your borders with 200.000 acres of A-rate farmland is not the best thing ....
I do not think so.
The value of the FRN or EURO is dependent on taxpaying. Think about this. Let us assume, hypothetically, that the FRN can no longer be used to pay taxes in the US. Would the FRN - exchange rate with the Euro change? I bet you it would, for the simple reason the domestic requirement to have FRN is no longer there.
If the requirement to have FRN in order to buy oil no longer is enforced. Will the exchange rate with other currencies change? Of course it will, depending on how large the movement will be from FRN-payments to other payment solutions. The same goes for the tendency in times of struggle to onshore value in FRN in bonds and stock.
Between these two, the international dimension and the national or domestic dimension are used to make a price discovery. So, even though a reserve status may be lost, and therefor, no longer can inflation be exported to other countries in the same manner as before, before it comes to the point of destruction, it will be subjected to a process of restructure.
I would say though that having CCP within your borders with 200.000 acres of A-rate farmland is not the best thing ....