Power comes from productive capacity, not some symbolic medium of exchange. The world reserve currency status is nothing but a drag on our internal production, and losing that could do nothing but strengthen us, even if it means losing this pretend power over oil imports. Besides, buying in USD is a convenience for these other nations; it's not a requirement. Show me that the Chinese or Norwegians MUST purchase Iraqi dollars in USD and I might give this little theory some consideration. People buy and sell in USD because we are the consumption powerhouse of the world which makes it much easier to get the goods they want with their new found wealth. In other words, we provide liquidity. Iraq could never spend all the Yuan they could get from China by exclusively selling their 8 or whatever mmbd production to China. So everyone deals in dollars, and Euros, and whatever else they need to convert to on the floating currency exchanges to balance payments into the local currencies they are selling and buying from.
The only reason we benefit from running a huge trade deficit, which lowers inflation at the expense of jobs here, is because all these nations want to leach off of our immense consumption capacity instead of becoming internally efficient themselves. Anyone who blames their actions, which we lobby until we are blue in the face to stop, are ill informed.
Every American should take jobs over short run inflation any day. More jobs = demand for labor = pay raises. These will more than offset inflation and become a net benefit to working society. And we can more than cover the COLA to transfer payment recipients as Treasury revenue will be bolstered while welfare/retraining/unemployment costs are lowered.
If you're going to troll on this subject you might as well log in with your regular account and ask questions directly. Bord knows I like to talk about it so trolling never works me up more than it gives me an opportunity to collect my thoughts and put them on paper. So thank you.
