Economics

1. The US dollar is the world's primary reserve currency. We get significant economic advantages regardless of debt levels. We can literally spend our way out of global crises like we did in 2008. Can’t do that if no one uses our dollar as trade base.

2. US debt is primarily denominated in our own currency and supported by the world's largest economy. If US debt is *not* backed by the largest economy, who will buy it? Yields will plummet.

3. Economic "resets" typically don't happen by design but through crisis, often with far more severe consequences beyond this controlled policy change produces.

4. Idk what to say about self-inflicted economic pain lol. Why would we self-inflict?

The US dollar being the world's reserve currency is bad for everyone

friendly neighborhood shitcaster / building @pinetree

everything has winners and losers, don’t see why this wouldn’t. Was great for US financial industry, for one

At what cost? Leads to a lazy / gluttonous finance sector that eats the rest of the economy

your post said it was bad for everyone, i merely pointed out that wasn’t true. agree there were plenty of losers  

tech/software/services, fwiw, were all great winners as well. Plan accordingly

what’s your argument for why it has been bad for finance and tech? and what data do you think backs that up?

I think there is a real moral cost to playing the game on easy mode

Knowing your government can bail out your bad trades makes you a worse trader and makes the industry more parasitic on the real economy

so by this logic it has been good for US manufacturers playing on hard mode?

I generally agree there is a bit of a push and pull with material success and spiritual health, but also idk there will always be parts of the economy with headwinds and parts with tailwinds. I don’t really see how you can say it’s bad for everybody, bc the tailwinds are good economically and bad spiritually and the headwinds vice versa?

Winning in an unstable equilibrium is fools gold 

The issue is not about what side of the imbalance you’re on, it’s simply the fact that running a world economy on the dollar requires an endless vacuum of dollars away from the USA into the rest of the world

This is an unstable state and eventually collapses — haggling about who gets a chair is short-sighted

if the world having a reserve currency is unstable why does it keep recurring?

Now you’re conflating inevitable with good 😅

Answer to your q:
- it hasn’t always been the case. The sterling, franc and mark shared the stage at one point 
- insiders who benefit from the cantillon effect have a perverse incentive to lobby for it (as they did in bretton woods against economists who recommended a bancor)
- coordination costs of maintaining a proper basket currency were higher prior to the tech rails we have now

Having done something one way historically is not an indicator of good or correct. What is your argument is other than playing devil’s advocate?

i never said anything about good :) just that something unstable doesn’t usually persist like this