From there, Bretton Woods II was born, where the dollar still dominates, but in a system that mostly uses “inside money.” Inside money is made up of claims that are someone else’s liability, while outside money is the type of money that is the liability of no one. In other words, the money system became largely debt-based. So when China holds U.S. Treasurys, that is inside money. When Russia sells USD to buy gold, that is outside money.



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