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.
The Federal Reserve's Real Broad Dollar Index (RTWEXBGS) is 113.51 as of February. Not saying it would crash losing all of that 13.51 excess overnight, but it's still overvalued against foreign currencies.
Is this not what the current US administration seeks? You can't simultaneously be the reserve currency and hope to be a net exporter at the same time.
Perpetual trade deficit is modern system of tribute.
> Perpetual trade deficit is modern system of tribute
Probably not. Equatorial Guinea, Palau and Kyrgyzstan run the largest current-account deficits as fractions of GDP [1]. (Current account counts goods and services.)
[1] https://en.wikipedia.org/wiki/List_of_countries_by_current_a...
