Post
Topic
Board Economics
Re: Obama's Former Chief Economist Calls For An End To US Dollar Reserve Status
by
lyth0s
on 09/09/2014, 03:54:27 UTC
"To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status"

"Note that as long as the dollar is the reserve currency, America’s trade deficit can worsen even when we’re not directly in on the trade"

To be honest, as we decline as the world reserve currency that will actually lead to further devaluation of the USD. We depend on other countries needing to buy up USD in order to conduct their business (IE Oil trade). Without them needing to conduct business in USD there will be no one left to soak up all of the USD that are being printed. This is why BRICS is such a threat to the USA. All of those USD for sell back to america will create crazy inflation and we will be in big trouble.