I have been wary of petrodollar and Eurodollars for some time now. There are what? Trillions of dollars out there beyond the control of the United States. They have a life of their own. If the world loses faith in the dollar, and starts dumping them, the Fed will have to severely raise interest rates to slow it down. (who knows if that would even work). This would probably push us into a depression. It is a scary scenario.
“If the world loses faith in the dollar, and starts dumping them....”
What currency, pray tell, would the world trust more?
Also, please tell me why it would make a difference if the dollars were “located” overseas or domestically? The laws of supply and demand knows no borders.
There are plenty of things to be worried about but that is WAY down the list.