I can exchange a $10 note for "made in America" bag of potatoes.
Good for you. But I'm asking about what I could buy with $10. It will be very strange to buy american potatoes with all that logistics when I could buy local potatoes for roubles without any problems and much cheaper. $10 is useless for me today. So for billions of other people. Why anybody would want to keep something useless? Of coulse they will try to get rid of that useless thing.
Question is about international trade. There is no any sense to use some currency in international trade when currency issuer have nothing to sell for it and at any moment could just deny to accept them back at all.
Whose goods circulate on the international market? So whose currency should be used for trade? Simple as that.
There is no significant amount of USA goods on the market, so there is no any sense to trade in USD.
The Chinese might struggle a bit with that.
They would not. If they will need to, in the worst case they will just order half of their people to go grow potatoes, and that's all. But more probably they will exchange some microwaves and smartphones to potatoes. And they don't need dollars to do it anymore.
I can exchange a $10 note for "made in America" bag of potatoes.
Good for you. But I'm asking about what I could buy with $10. It will be very strange to buy american potatoes with all that logistics when I could buy local potatoes for roubles without any problems and much cheaper.
Question is about international trade. There is no any sense to use some currency in international trade when currency issuer have nothing to sell for it and at any moment could just deny to accept them back at all.
Whose goods circulate on the international market? So whose currency should be used for trade? Simple as that.
There is no significant amount of USA goods on the market, so there is no any sense to trade in USD.
The Chinese might struggle a bit with that.
They would not. If they will need to, in the worst case they will just order half of their people to go grow potatoes, and that's all. But more probably they will exchange some microwaves and smartphones to potatoes. And they don't need dollars to do it anymore.