[Vermont Lt]

And I when it stops being the reserve currency all of those dollars being held overseas will come rushing home. The result? Inflation the likes of which we’ve never seen before.

[B4Ranch]

And whose money will be stepping in to fill the spot of the US dollar?

[SkyPilot]

If we technically default (prioritization of payments is default by another name) then our acceleration towards economic doom is ensured. The US Dollar will be dead, and our interest payments on our current debt will skyrocket.

In fact, the rest of the world already is taking action - because they see our demise. We have fools preaching lies - that if we default it is "no big deal."

Fools.

[GenXteacher]

As soon as our national bankruptcy is complete. We’ve only entered the early stages at the moment.

[familyop]

"The dollar is very susceptible to losing its vaunted reserve currency position by the first major trading country that stops inflating its currency."

Well, then, maybe we should continue to inflate. We wouldn't want the U.S.A. to stop using its own currency as the reserve currency.

;-D

[familyop]

More seriously, BTW, the USD will continue to inflate as long as the manufacturing base on U.S. soil (different from “U.S.-based” manufacturing) is inadequate. The current economic problem is a result of the debt problem, and the debt problem is partly a result of trade imbalances (and in other part, a result of excessive government spending). The lack of manufacturing is a result of mostly zoning laws/ordinances against new, small manufacturing starts in rural areas (lack of new blood in the business).