traviswingoUSD Purchasing Power in Real Time Since 2000
The real time number isn't as interesting as the potential future number. If the dollar stops being the reserve currency, the purchasing power of the dollar will crash. No more cheap borrowing, no more low interest rates, hello constant high inflation. The Iran war has made that increasingly likely to happen. It may even have been intentional.
https://www.jpmorgan.com/insights/global-research/currencies... | https://spectator.com/article/the-us-currency-is-under-attac...
> If the dollar stops being the reserve currency, the purchasing power of the dollar will crash
This is far from clear.
> it's still overvalued against foreign currencies
That would make imports more expensive and exports more competitive. Some pain, given we run a deficit [1]. But $50bn/month adustment in a $30tn economy is 2%. Not fun. But not a "crash."
(There is a genuine argument to be made that American voters have been rejecting dollar hegemony across multiple elections for a couple of decades.)
[1] https://www.bea.gov/data/intl-trade-investment/international...