Dollar Large
Would it be inflationary to the US dollar if other countries sold off their large holdings?
I am thinking about the affects of a sliding US dollar. One effect is that some countries may sell off Us dollars and convert to something like the Euro. I believe that this would create a greater supply of dollars which would be inflationary. Is this correct?
Also, could the US prevent this from happening if it started to pay off it's debt?
Yes it would because more money in circulation dimishes the value and causes someting called inflation. So China can kill the U.S by releasing it's trillion U>S dolar reserve.
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