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by JumpCrisscross
2633 days ago
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> it takes actual resources to make things for people to consume Value is subjective. Energy intensity of global GDP has been falling for decades [1]. Where I've seen estimates, it looks like material intensity has been doing the same. Broadly speaking, most countries won't have a reserve currency. Neither their demographics nor economy can support it. But some countries punch above their weight. Canada, Switzerland and Japan have outsized influence for (a) being trading economies with lots of buying power (i.e. lots of overseas vendors end up with their currency) with (b) limited or no history of currency controls (i.e. people aren't in a rush to swap out of the currency, for fear of it getting trapped), and (c) stable governments and central banks. Given (b) requires free capital flow, which through the impossible trinity [2] means giving up a fixed exchange rate or monetary sovereignty, reserve currencies aren't something most countries may even want. Using dollars tends to be fine. Having alternatives in Europe and China is probably for the best, for everyone, in the long run. [1] https://yearbook.enerdata.net/total-energy/world-energy-inte... [2] https://en.wikipedia.org/wiki/Impossible_trinity |
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