mnbvcxz123 t1_j2bbz4l wrote

US corporations keep taking gigantic bailouts, but it's not a problem for the overall US economy because the US can just print more money to cover the bailout.

If US corporate bailouts had to be paid in rubles (for some reason), that would give Russia a tremendous amount of leverage over the US economy, even though they have nothing to do with the US. And there would be nothing the US corporations could do about it.

That's basically what happened to Greece, and will happen to any nation whose currency is the euro.


mnbvcxz123 t1_j1yt0fo wrote

Individual countries having their own currency provides powerful advantages, since the country can float its own currency against other currencies and thus provide a buffer during times of economic turmoil. Also, countries that issue their own currency can not go bankrupt, since they are in control of the amount of currency in circulation and can originate more if needed.

The Euro is a good counter-example for why international currencies are dangerous. Countries that have adopted the euro have seen tremendous economic and political power move outside their own country as a result.

Greece, famously, was brought to its knees economically by German bankers who were determined to throw the existing Greek government out of office and force the country to borrow money to meet targets imposed from outside, impoverishing the local population and forcing a mass exodus of working age people.