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America’s national debt recently hit a new milestone of $40 trillion. It is estimated that interest payments on the national debt are now the second largest expense in the US government budget, trailing only Social Security. How was the US able to borrow so much and for so long? One answer, according Harvard economist Kenneth Rogoff, is the US dollar’s status as the world’s reserve currency.
In this episode, Rogoff - former Chief Economist at the International Monetary Fund - explains how the US dollar came to enjoy this hegemonic status, what being the world’s reserve currency actually means in practice, and why he believes the dollar is now in decline.
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#Economy #USDollar #Currency
Timecodes:
0:00 The US National Debt hit 40 trillion dollars
1:29 Introducing Professor Kenneth Rogoff
4:00 What amount is the US paying annually on its debt?
5:20 Why is the US the worlds reserve currency?
9:15 How the Bretton Woods Conference aided the US dollars dominance?
13:50 Has the US dollar faced any serious challengers?
17:03 Is a weaker dollar good for American businesses?
22:20 Which currency in 2026 poses the biggest threat to the US dollar?
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