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Currency exchange -> Reserve Currency (USD swap line) Reserve currency comes from US trade + military superpower Also legal regimes ultimately mean nothing w/o force to back them, particularly if you have habitual line-stepping regimes who fancy themselves hegemons
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Feels like there’s a few different things that can underwrite a rules-based order with teeth, besides military power (which includes embargos/blockades) Veto-based legal regimes (UNSC) Currency exchange rates (WB/IMF) Technical-standards based (ITU etc) Refugee policies
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Rising dollar crushed numerous EMs, easiest example being Argentina. Swap lines are common tool to cause pain when our allies get out of hand. Russia has to move gold around and play tricks just to try and get their hands on dollar.
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