The US financial system has evolved over several centuries. Recently, it is considered the most powerful in the whole world, even despite the crises that occur regularly. This is possible due to its features.
The backbone of the US financial system
The US financial system is unique - despite numerous crises, it does not experience decline and always remains the most powerful. It is still heard that the dollar will soon lose its strength, and America will go to the bottom, but this country remains strong. The success of the US financial system is largely due to its foundation. It is known that any system of the economy is based on the activities of organizations that are engaged in the release, concentration and redistribution of money. The United States has assigned this responsibility to the bank, the role of which is played by the Federal Reserve System. It is she who controls banks, regulating their activities, and also protects the credit rights of consumers and performs other important functions.
The country's banking system consists of commercial and investment banks. The former play a major role in the US finance market. With their help, payments turnover and short-term trade financing are carried out. There are more than 10,000 such organizations in the United States. They can be called the locomotive of the US financial system. A separate role belongs to the reserve banks, of which there are 12 in the country. Their role is to carry out the policy of the reserve system on the ground. One of the main elements of the financial system is exchanges. It is they who make it possible to judge the power of the country. They pass through themselves a lot of transactions based on the sale and purchase of all kinds of goods and securities. Every big firm contacts the stock exchange at some point in order to find buyers of products or investors.
Features of the US financial system
In the United States, all goods are much cheaper, oil produced in the country is practically not consumed, and products from it are not more expensive than in exporting countries. In addition, the residents of the United States, despite the crisis, still have money. The thing is that money is printed by the federal reserve system, which is considered a private office. Then another question arises: where is inflation? It is important to understand that it does not appear immediately. In the meantime, a period passes between the time when new cash is issued and the time when it begins to depreciate. The state manages to give money to the population and sell it. After people spend these funds, the United States lends them to some countries. Thus, inflationary money is passed on to others.
Of course, the national currency is depreciating everywhere. However, this only happens if you cannot turn your currency into the equivalent of everyone else, and this is precisely the American dollar. So the US financial system dumps the extra dollars to others, and they work overseas on their own. And goods in the United States are much cheaper because dollars are much more expensive inside the country than outside. It turns out that the system of strangers and their own money works perfectly.
