Tijani
Registered Member
Don't worry bro. Didn't take as such, hence the effort to take it with laugh 
Please let me clearly my statement concerning the USD as THE world's reserve currency. Your absolutely correct in stating that it's NOT the only one, but it is The umero uno head honcho, constituting approximately 60% of global foreign exchange reserves and henceforth my usage, most common usag, as it being the world's reserve currency. This is general term used to reflect it's dominance.
I believe you might be thinking of the IMF's Special Drawing Rights (SDR), which is the international reserve assets. SDRs only constitute a potential claim on other member states' foreign exchange reserves. They are however not an actual reserve currency in the true sense, even if though they have real world overlapping implications. Since they are issued by the IMF, they are based on the proportional quota shares of the specific member states in the IMF, and therefore lack the corresponding economic share of the world's economy. China share for example only constitutes a tiny fraction.
The petrodollar system as we know post-1971 has indeed helped the US sustain this geopolitical leverage through acts of military and economic warfare against perceived challengers.
My initial statement was that "You need to differentiate between external currency fluctuations and internal purchasing power."
Since you agree that currencies derive value relative to others and emphasize the IRR’s 99% devaluation over the past 15 years, attributing it to excessive money printing without commensurate economic productivity or import capacity is precise analysis of the current situation. The failure of the IRI to reign in excessive monetary expansion and thus resulting in the same negative effects as in what's beautifully referred to as quantitive easing. This has unfortunately resulted in that the government funding deficits by printing money, increasing liquidity without GDP growth or foreign reserves to back it.
It's late and my head is mush. I told you that I didn't want to write an essay and kill you with laughter.
Please let me clearly my statement concerning the USD as THE world's reserve currency. Your absolutely correct in stating that it's NOT the only one, but it is The umero uno head honcho, constituting approximately 60% of global foreign exchange reserves and henceforth my usage, most common usag, as it being the world's reserve currency. This is general term used to reflect it's dominance.
I believe you might be thinking of the IMF's Special Drawing Rights (SDR), which is the international reserve assets. SDRs only constitute a potential claim on other member states' foreign exchange reserves. They are however not an actual reserve currency in the true sense, even if though they have real world overlapping implications. Since they are issued by the IMF, they are based on the proportional quota shares of the specific member states in the IMF, and therefore lack the corresponding economic share of the world's economy. China share for example only constitutes a tiny fraction.
The petrodollar system as we know post-1971 has indeed helped the US sustain this geopolitical leverage through acts of military and economic warfare against perceived challengers.
My initial statement was that "You need to differentiate between external currency fluctuations and internal purchasing power."
Since you agree that currencies derive value relative to others and emphasize the IRR’s 99% devaluation over the past 15 years, attributing it to excessive money printing without commensurate economic productivity or import capacity is precise analysis of the current situation. The failure of the IRI to reign in excessive monetary expansion and thus resulting in the same negative effects as in what's beautifully referred to as quantitive easing. This has unfortunately resulted in that the government funding deficits by printing money, increasing liquidity without GDP growth or foreign reserves to back it.
It's late and my head is mush. I told you that I didn't want to write an essay and kill you with laughter.
Last edited:
