If the US Dollar is replaced as the world reserve currency, what does it mean for the US as a whole?
Like it or not, the United States still has the world’s largest economy. The United States will have the world’s largest economy for the foreseeable future. Even if the US Dollar is replaced as the world reserve currency, the influence the United States has on the international financial system cannot be ignored.
What will change is the United State’s ability to borrow money to fight protracted wars, fund entitlement programs and fuel the American people’s unquenchable appetite for foreign goods. Wow, this sounds like it will actually stop us from digging a deeper hole. Why should the rest of the world trust us with their money if we’re just going to waste it all?
Maybe if we turn things around, create a sustainable model for paying for our obligations as a nation and actually stop borrowing to live our daily lives then we wouldn’t be the laughing stock of the world.