Who might get stranded by US currency risk?

Dollar seigniorage is more powerful than ever

clock • 3 min read
Richard de Lisle of the VT De Lisle America fund
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Richard de Lisle of the VT De Lisle America fund

The Democrats are wedded to Modern Monetary Theory (MMT).

They want to put America back to work and this doctrine is the way to go. It is Keynesian with the addition of seigniorage and is compelling for our times. Seigniorage is government profit made from issuing currency, especially the difference between the face value of notes and coins and their production costs - that is, the benefit that accrues to the money issuer which currency holders bestow by not receiving interest on their holdings. Ever since President Nixon suspended gold convertibility 50 years ago, the dollar has depended on the kindness of strangers to support its value....

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