Thursday, March 31, 2022

When Chickens Come Home to Roost

 Google question trending: what happens if the dollar loses reserve status?  

A weakening dollar in itself makes foreign goods and services more expensive for American consumers and businesses, and should the dollar lose the reserve currency status, it would make our transactions more expensive as well — costs that businesses would pass on to US consumers.





For decades, Uncle Sam has weaponized the dollar's reserve status and used it as a cudgel to beat other nations over the head thinking that its status would never be challenged.  Think again.  All of the inflation that we managed to offshore via our currency's reserve status may be coming back onshore soon.



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