Some are beginning to panic that the U.S. dollar will lose world reserve currency status.
Well, perhaps that this isn't such a bad idea. Can anyone name one benefit that Americans receive by having the dollar as the world's reserve currency? I sure can't.
Money Metals Exchange took a look at this and sees that if this happens, it won't affect our standard of living. It is not about economic concerns, it's all political.
They begin with:
Earlier this month, Larry Kudlow insisted that it is "it's incumbent on the U.S. government, no matter who's in power, to maintain the reserve currency status of the dollar." Kudlow laments that a toppling of the dollar from that perch "seems to be the direction we're going in."
Kudlow's remarks came a day after Donald Trump declared that China is trying to displace the U.S. Dollar [sic] as the NUMBER ONE CURRENCY" and that if this occurs, it would be the biggest defeat for our Country [sic] in its history."
Neither Trump nor Kudlow actually explain why maintaining reserve currency status is so important. After all, it's clear that it is not necessary for a country's currency to be a reserve currency in order for that country to have a high standard of living and a high degree of economic freedom. We could simply look to Norway and Switzerland to see that.
What's Good for the Government Isn't Necessarily What's Good for the People
Trump and Kudlow seemingly can't tell the difference between what is good for the US government, and what is good for the people. The idea that global reserve currency status for the dollar is essential to "America" relies on the false notion that the interests of the US regime and the interests of ordinary taxpaying Americans are one and the same.
To read more, go here.
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