The Macroeconomy, Where We Are and Where We’re Going

In the past ten years, a decade primarily of open, globalized trade, Europe, China, and emerging countries combined to double their outstanding dollar debt from $30trn to $60trn [1] (Total outstanding global debt is approaching $260trn, for reference.). These countries grew their dependence on the dollar because, put simply, it was the optimal decision for both parties in the debt transaction process: buyers of debt (dollar exporters) sought to denominate their returns in the most liquid, stable currency, while sellers of debt (dollar importers) preferred to receive…