The Subtle Crack
The dollar. The intangible monetary construct concocted in its paper form in 1861 to finance the civil war is arguably the United States' most precious asset. Its solidity is underpinned by an enviable rule of law . It gives good ol' U.S. of A the blessing of perennially low interest rates (which elevates the standard of living of Americans to the tune of $100bn annually ), and the ability to throw in the trash can any resemblance of fiscal restrain. Why be frugal when normal market rules don't apply to you? After all, there is no such thing as a U.S. Treasury bond market " vigilante ." Not in the same way they exist for any other --more normal-- sovereign bond markets, anyway. We live under a de facto Dollar Standard. Nations hoard greenbacks to bulk up reserves (save some very wacky exceptions ) to have dry powder to prop up (or push down , as recently seen) their currencies when they're under attack, or to buy imported goods. It is a very exorbitant p