from enabling businesses to access financing to sending people $1,200 checks the US government is making it clear that it intends to reach for its proverbial wallet as many times as necessary and act aggressively through fiscal policy on the monetary policy side the Federal Reserve which is the central bank of the United States is more than willing to ensure that the previously-mentioned wallet is always full with each crisis that passes more and more aggressive policy choices are being made from lowering interest rates through 1% after the.com bubble to lowering them all the way to zero as well as quote-unquote printing money through quantitative easing after the Great Recession and being even more creative in 2020 some observers are worried too that eventually the US dollar might collapse are these concerns justified of course after all we could fill a library with books about various currencies that have collapsed over the years so why should the US dollar be any different however the went dimension is far trickier to tackle because a lot of forces in favor of the dollar are at work for example one other central banks have been even more aggressive with interest rates venturing into negative territory over in the European Union and Japan - it dominates foreign exchange trading with roughly 90% of all forex trade involving dollars 3 it's the most widely held currency by far with over 60% of central bank reserves being a dollar as compared to just 20% for the number two currency the euro and for it's the most widely borrowed currency with 20% of the worldwide that being denominated in dollars the lot boils down the simple supply and demand as legitimate as concerns related to the ever-increasing supply of dollars maybe it's important to also look at the demand situation and understand that until the dollar stops being in such high demand a collapse is unlikely as such while it will most likely collapse eventually a valid case can be made that among today's currencies it will probably be among the last or even the last Baughman of the fall and beg against the dollar is therefore riskier than it seems
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