“The big downside to reserve currency status is running trade deficits.”
While that’s true you also have to take in the benefits. It allows us to tinker with the global financial system, run up huge deficits and make the dollar worth more in comparison to other currencies. But this is all coming down regardless with our $34 trillion plus in UNPAYABLE debt. This Ponzi is coming to an end. We have our own gas and oil but most European countries are screwed. In any event the dollar is headed down in a big way and so is our standard of living. If you think there’s social unrest in this country now you haven’t seen nothing yet.
Ukraine ping
jimwatx: [While that’s true you also have to take in the benefits. It allows us to tinker with the global financial system]
It is the strongest player because of the size and liquidity of its market, and the energy and inventiveness of its large corporations. This was the case decades before WW2 as American corporations from Standard Oil to Ford Motor Corporation became leaders in their industrial niches. Today, behemoths like Google, Tesla, Microsoft, Pfizer, et al, are ultimately the underwriters of American prosperity, the national champions that keep America strong.
Jeff Sachs is one of those lefties who has swallowed whole hog the Russian fairy tale that the US became wealthy by putting a knife to the world’s collective throat. Basically, the Russians replaced the evil Jew in the Russian-authored Protocols of the Elders of Zion with the evil, conniving American.