| Clyde,
Let me add that one of the advantages of ending the dollar's reserve currency role would be increasing the incentive for the US to develop and rely on diplomacy rather than rely on coercion and bullying.
Hi Warren, You are exactly right. But I tend to think that ending the dollar’s role as the global reserve currency would be good for everyone. Yes, it would be painful in the short term. But “no pain no gain” is the watchword. Clyde The attacks on our liberties facilitated by the Patriot Act only worsen with time. But the rest of the world grows more weary with the reserve currency status of the US dollar as the US increasingly sanctions its uses for one reason or another, sometimes unilaterally. Biden’s proposed confiscation of Afghan reserves at the NY Fed are another nail in that coffin. As they add up, plus growing concerns over the size and cost of US debt, we are ever closer to the one that sends the dollar over the cliff.
Putting your reserves in American banks has its perils. A timely reprise of 2003's snatch of Iraq's reserves.
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