A world reserve
The global financial system rests on a striking reality: almost all countries rely on a currency they do not control. The US dollar is the world’s primary reserve currency, underpinning international trade, finance, and central bank reserves. From oil contracts to cross-border loans, the dollar dominates as the medium of global exchange. This arrangement brings a measure of stability; after all, the dollar is backed by deep US financial markets, strong institutions, and relative trust in the Federal Reserve. But it also creates vulnerabilities. A system where one nation’s currency is the foundation of global commerce means the economic choices of that nation ripple far beyond its borders. This can pose some risks, especially under the uncertainty of monetary policy in the country that holds the world's currency. With the Federal Reserve being threatened with losing its independence from government, it has shaken markets as members are being threatened with being fired for not com...