Quote:
Originally Posted by davebarnes
Yes, because the USD is a reserve currency and a safe haven of value.
All that cash is extra territorial.
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Well, there is a standard argument that reserve currencies circulate overseas as well. So UK, Canada, and Australia are maintained at a steady percentage of GDP, while reserve currencies USA, EURO, Singapore Dollar, Hong Kong Dollar tend to grow faster than GDP. Japan is a reserve currency, but Japanese maintain a steady fan of cash, and use it far more than almost everyone else in the world.
.2010 .2011 .2012 .2013 .2014
3.52% 3.57% 3.63% 3.58% 3.62% United Kingdom
3.72% 3.67% 3.76% 3.77% 3.80% Canada
4.14% 4.06% 4.15% 4.29% 4.41% Australia
7.91% 8.23% 8.12% 8.37% 8.82% Singapore
6.57% 6.93% 7.24% 7.45% 7.74% USA
9.05% 9.32% 9.53% 9.87% 10.31% Eurozone
13.28% 13.96% 14.82% 15.91% 15.67% Hong Kong
17.99% 18.78% 19.19% 19.74% 20.04% Japan
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