re: How does the U.S. control the value of dollar by soaking up drug trade money?

quote:

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I get that it's a great way to soak up excess U.S. dollars...but how does that translate to controlling the value of the dollar?

That's the missing link which is going over my head.

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I have never heard this, but if they are removing money from circulation they might be implying that this makes money more scarce and therefore relatively more valuable.

Of course that explanation ignores the massive amount of credit extended during the last 8 years.