Loading ...Our real export strength would be in agriculture and eventually oil. Weapons of war is something we’re pretty good at.
Point taken, yes, a weaker dollar will make imports more expensive, but that’s probably the idea. Make them expensive enough that we buy our own stuff.
As for the dollar reserve currency and strength. The dollar now is ridiculously strong against the other fiat around the world, including the Aussie dollar. I know you remember back in the late 90’s, early 2000’s the Euro was 1.63 – 1, now 1.13, the Sterling around the same. I think the Mexican Peso got up to an 8-1 ratio, now 22 or so. Point is, the dollar has a long way to fall if they want it to.
There is no currency to replace it unless the BRICS actually bring back a system with a gold or other backed currency meant for everyday use, not just something that settles international trade.
The Chinese yuan is not viable, they could back it with gold I suppose to make it viable, but then they’d lose their ability to stimulate their economy with fiat as they are doing right now. I suspect a gold-backed Yuan would also make their exports more expensive which isn’t conducive to an export economy.
It’s a fiat mess out there. I’ve always believed the first country to back their fiat with gold ultimately wins the game, but the attractiveness of money printing from thin air is just too irresistible, especially as long as others are willing to take paper for real goods and labor.