“We like the efficiency that allow purchase of imported goods at a price below those produced domestically. We live in a global market and take advantage of buying what we please.”
It has been nice while it lasted. Unfortunately the reserve currency status of the dollar is coming to an end. When it does, the ability of the Federal Reserve to print money to fund the current account and federal government deficits will also end.
The current generation of Americans inherited wealth accumulated through the hard work and productivity of past generations. We chose to live beyond our means through borrowing and at the same time dismantle the manufacturing economy that allowed the wealth to be accumulated. We are very much like children who inherit wealth and squander it instead of living productive lives. When the money runs out the individual has no friends, no resources and no skills to recover.
Once the dollar loses its reserve currency status, the rest of the world will no longer accept our dollars to purchase their manufactured goods and food. We will be a third world nation without the productive capacity (skilled people, industrial infrastructure, and investment capital) to restore our economy. The government will determine how to divide the scraps among the population.
Excellent post.