Effect of US Govt. fiscal deficit and bond issues will have effect on the currency and in case of a depreciation in value, it could be a huge loss for the economies. Its the case of countries like ours and China being affected for no fault of theirs and because of ill-managed US.
This, in its very essence questions the hegemony of the US currency.
It is for this reason that India joined the BRIC countries have suggested the creation of a supra-national currency that can stand up to the dollar and provide a hedge against the fluctuations against the dollar.
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