Imagine, as an extreme example, that the entire world had to use Swiss francs for its international transactions and commodity purchases. It simply wouldn’t work, because there isn’t enough money supply from that small country for the whole world to use. It’s not liquid enough; there aren’t enough francs.

The current system is running into that issu

Nowhere did he question the position of the dollar, and by default US policy makers appears to accept that it could decline further. Given that many rival economies set their monetary policies to maintain parity with the US dollar, Fed easing and a weaker US exchange rate will likely spur easing across international markets.

Unlike most developed countries, the United States government is heavily reliant on foreigners lending it money by buying its Treasuries. Foreigners currently hold $6.7 trillion in U.S. government debt.

However, from the start of 2015, due in part to the strong dollar environment, foreigners have been buying very little U.S. government debt compared