Part 10/16:
Japan's experiences underscore that quantitative easing alone cannot revive a stagnating economy with structural challenges—it necessitates a more comprehensive approach, including fiscal reforms and possibly acknowledging the limits of monetary policy.
The US and Global System: A Fragile Global Credit Network
The US dollar system underpins the global economy:
It acts as the reservoir of liquidity as many nations, corporations, and investors hold and trade in dollars.
Countries like Brazil and China generate dollar surpluses from trade, recycling these into US Treasuries and other dollar-denominated assets.
This creates an interconnected network where: