00:00We're taught in school that printing money is really bad because it leads to inflation.
00:04But that's less true if you're a world reserve currency and if you can do it right.
00:09Picture this.
00:10You're a country that's in a lot of debt and you need to pay for bridges, roads, education,
00:15and retirement.
00:16But if you try to print more money to solve all that, you'll just make the problem worse
00:19because the price of stuff will go way up, the middle class will get upset with you,
00:23and you'll get voted out of power or even worse.
00:26But if you're the world's reserve currency and the world needs your money, then your
00:30country gets a special little button that when you press it, you can export your dollars
00:34and inflation goes away.
00:36But that also means if that country is irresponsible with how much they print or if there's a recession,
00:42it could affect the entire world.
00:44That's partially why when you look at the world today, inflation just hit a peak in places
00:48like the UK, Italy, and Germany.
00:51Some inflation rates around the world have reached multiple digits while US inflation is
00:55trending lower.
Comments