Many global economies, especially emerging economies, hold so much foreign reserve in USD that they are directly susceptible to Washington’s monetary policy. For example, in 2013, the Federal Reserve started to slow its policy of quantitative easing (money printing), known as the ‘Taper Tantrum’.
Their answer was to crown the USD as the world’s reserve currency, meaning it was backed by the world’s largest gold reserves. The USD, in the context of 1944’s post-war politics and prosperity, was the sensible choice at the time. Surely it’s time for an update, three-quarters of a century later?
Financial inequality is a proven indicator for the likelihood of conflict – conflict that costs us all. Research from Yale has indicated how a country with a GDP per capita of $250 has a 15 percent chance of descending into conflict in the coming five years; while, in a country with a GDP of $1250 per person, the chances are less than 4 per cent.
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