There is approx 7 trillion dollars of foreign exchange transactions per day, and almost 90 percent involve the $US.
That creates a huge demand for dollars, which is why the US can run massive budget and trade deficits for decades without devaluation or higher interest rates.
The US can print massively every time there is a financial crisis without big currency devaluation or inflation.
If the USA were to lose that because other countries start using the Euro, the US becomes a “post-industrial” economy that can’t finance its budget and trade deficits without high interest rates or massive inflation.
It won’t even be able to afford imports. Which will be difficult since the US doesn’t make much anymore and relies on imports of Ch!nk crap.
Both the BRICs and the EU have a big incentive to make this happen.
But many in the USA don’t see the risk because they are too bound up in the “’Merica, F*ck Yeah!” mentality.
This is a common misperception, because manufacturing has declined as a percentage of the employment pool, but the U.S. is still a major manufacturer, that manufactures more value than ever before. We just use way more robots than people to do it, and if it is cheap crap we let cheap labor overseas turn it out.
The U.S. is the second-largest exporter in the world, with an estimated $2.12 trillion in exports for 2020.
Yeah I get the argument, but it's overplayed. Demand for dollars has more to do with investment in the United States than it does with use as a reserve currency. The US was and is by far the best place to invest in the world for a multitude of reasons.