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While Brazil has the largest amount of dollar loans outstanding at $287 billion, few countries have relied on this source of money as much as Turkey, where dollar loans of around $172 billion represent 22 percent of the overall economy.
Investment goods are generally cheaper in America, relative to other goods and services, than is the case abroad; so a given amount of dollar spending provides more factories or computers than it does elsewhere.
"You have a great group of financial advisers and an astonishing amount of dollar assets, and it has taken forever to build," said Barry S. Friedberg, a former chairman in Merrill Lynch's investment banking division During the period, Merrill said, turnover of its highest rated financial advisers remained at an historical low, a positive sign that the division is humming on all cylinders.
"These long-term debt cycle forces are clearly having big effects on China, oil producers, and emerging countries which are overly indebted in dollars and holding a huge amount of dollar assets—at the same time as the world is holding large leveraged long positions".
"These long-term debt cycle forces are clearly having big effects on China, oil producers, and emerging countries which are overly indebted in dollars and holding a huge amount of dollar assets — at the same time as the world is holding large leveraged long positions".
Quantitative easing is partly aimed at weakening the dollar's value, by increasing the amount of dollar cash in circulation.
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The chart shows a drop in the amount of dollar-denominated public debt across the region (external debt in the 2000s was mostly dollar-denominated).
Reports, which were later denied, that South Korea planned to reduce the amount of dollar-denominated assets in its reserve portfolio caused turmoil in currency markets.
According to the Bank for International Settlements, a forum for global central banks, the total amount of dollar-based loans has jumped from $5.8 trillion in the first quarter of 2009 to $11.4 trillion today.
"The amount of dollars to artists is rate times volume.
It's not the amount of dollars that matters," Anderson said.
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