| You miss the point. The value of money is based on trust and belief. Hence the word fiducial (fiduceo) money. One part of a market is holding your promises. If you don't all your current transactions are considered shady (standards& poors, ...), hence the notation agency on currency: it measures how likely you are to reimburse your debt. USA being one of the largest emitter of bound on the market, the word they are being crooks on an important topic would damage on the long term reputation hence the value of their currency, hence triggering a strong recession + hyper-inflation. In the case trust in USA Feb bank (which is private) is broken, USA may turn abruptly in Venezuela. Since most notation agencies are in the USA, it might have a domino effect creating major chaotic fluctuations between currencies, hence automatically triggering a safe backing off from every hedge fund out of their countries ... If USA lose the trust of the market since globalisation is labelled in US$ it means either people are going to diversify to Swiss Francs, Euro, CAD, Pounds ... and a big loss for USA. No one want this. Not the big european, asian groups. Workers and modests people would be totally glad, but it would mean a 1929 situation in the USA for sure, and in a lot of connected economies. So no one wants this. |