(no title)
RedBeetDeadpool | 3 years ago
A holds gold.
B holds dollars.
C holds oil.
A trades B, gold for dollars. A holds dollars, B holds gold.
A trades C, dollars for oil. A holds oil, C holds dollars.
After your suggested trade result:
A holds oil.
B holds gold.
C holds dollars.
If there is no "middle man", party A gets oil, party C gets gold. Party B keeps their dollars. End result:
A holds oil.
B holds dollars.
C holds gold.
Assuming "B" is USA, USA doesn't get to export its inflation/funding for stimulus checks/student debt/pension crisis/(or in trump era - a wall that does nothing) away to "C", whoever that ends up being, meanwhile, Ghana gets the oil it wants, and "C" gets currency without having to pay for the choices of politicians they have no control over.
nickdothutton|3 years ago
luciusdomitius|3 years ago
https://en.m.wikipedia.org/wiki/Exorbitant_privilege
happyjack|3 years ago