Stephen Moore
👤 SpeakerAppearances Over Time
Podcast Appearances
If it weren't for currencies, we'd probably all still be living in caves.
So you can trade.
And the point of having a currency is it has to have two functions.
Number one, it has to be a store of value, right?
Because if it loses value, nobody's going to want to hold on to dollars.
It's like, would you want to hold on to Venezuelan pesos?
Probably not.
Or Zimbabwe.
I have a bill in my wallet.
Glenn, I think I've shown this to you.
It's a trillion Zimbabwe dollars.
It's probably worth about 36 cents.
Right.
So it doesn't matter how many zeros you put on the bills.
It doesn't retain its value and it's a means of exchange.
And so the only way that a currency can function...
is if it fulfills those two missions.
And the dollar, one of the most important things for the United States in terms of monetary policies is to make sure, Glenn, that the dollar retains its position
world reserve currency status.
So in other words, all transactions that are international, they don't happen in pesos.