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The U.S. Needs To Keep Its Allies To Preserve Dollar As a ‘Global Reserve System’

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The past decade or so has seen American withdrawal from several conflict zones with little appetite seen for military engagement or involvement in global disputes. The power of the U.S. now rests almost solely on the status of the U.S. dollar as a global reserve currency, allowing it to use sanctions and exert pressure on countries. In order to maintain this, it must also keep its allies invested in that system. In fact, the U.S. dollar is more than a currency. There is a whole system built around it. Sovereign financial instruments, be they currency or bonds, are also political…

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