The Fed and other government entities have been discussing and proposing the imposition of “capital controls” in the USA. Capital controls are when the government limits what people can do with their money with the goal of reducing outflow of currency, and preserving foreign currency balances. Capital controls are a sign that something very bad is happening or about to happen in the currency.
For more than 50 years, Americans have never really thought twice about the value of our currency.
But times are rapidly changing. And most Americans don’t realize that the greatest weapon in our nation’s arsenal is not our military might or our education system, but the simple fact that the U.S. dollar is the world’s “reserve currency.” As such, our money forms the basis of the global financial system. And banks around the world hold our dollars in reserve against their loans.
That’s why, for the past few decades, we have been able to print and borrow trillions of dollars, with no real negative impact.