alt Hacker NewsI agree, losing reserve currency status would make American gdp / living standards to come way closer to Europe for the simple fact it won't be able to permanently increase its debt deficits. However its far from clear losing reserve status is going to happen, sure some countries will try to diversify but others are probably too tight inside the American umbrella (for defense for example).
But yeah, surprises can happen so interesting times.
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> others are probably too tight inside the American umbrella (for defense for example).
The UK is reconsidering. If the bloody UK is not confident, who else would be? They might be too tight inside for now, but that is a strategic weakness and it will only go one way. Short of the US making it a satellite, it will only loosen.
> I agree, losing reserve currency status would make American gdp / living standards to come way closer to Europe
Why do you think that the standard of living would become better after losing reserve?
> would make American gdp / living standards to come way closer to Europe
Why are you making it sound like EU is a third world country? Are you aware that living standards are higher in many European countries than the US, right?