re: Will the U.S.A. ever lose Reserve Currency status?

I have read many books on the history of currencies and global currencies.

Please read one and then come back to the board.

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I feel like the US’s military might (along with the economic might) is in part key to its lasting strength. If we need resources: we’ll take it with force. And defend assets with force too.

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This is the whole reason we start proxy wars currently and we’re involved in stuff like Ukraine, saving Argentina, conflict in Venezuela. It’s to create further dependence on the USD.

To the original question though about economic consequences.. the dollar won’t go away overnight for one. It’ll be a slow process of international trade happening in a different form. Inflation will creep up in the usd. Assets and markets will still appreciate on a nominal yield but not so much in real yield. See what’s happened with the FTSE and the British pound post Bretton Woods.

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have read many books on the history of currencies and global currencies.

Please read one and then come back to the board.

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Ah yes the YouTube expert... The logical playbook of the crypto bro.

If society collapsed my Internet money is worth more than gold or firearms.

Trust me bro

If so, what does that switch look like? What would happen to our economy?

The transition has already begun, at least on the margins.

Foreign central banks stopped growing their UST reserves in roughly 2014. Gold is increasingly the reserve asset of choice for net producers. The petroyuan share of global oil trading, while still dwarfed by the petrodollar is growing steadily.

It doesn't look like past rotations from Dutch Guilder to Pound Sterling to USD. We're moving to a multi-currency mercantilism with gold serving a key role as settlement for trade imbalances instead of USTs.

No one wants global reserve status for their own currency, least of all the Chinese as they have learned from our mistakes and have no desire to offshore their manufacturing base to maintain GRC status while civil unrest brews at home due to the hollowing out of their middle class.

ask yourself, what happened to the economies of the countries who previously sponsored the world’s reserve currencies …

The common denominator? Each of those Reserve currencies were heavily debased by their respective governments. In history, there has never been a fiat currency that didn’t eventually fail ….