TPM: the Dollar Challenged, and the day the American imperium ends

[Fred Sanders]

7. Once the Dollar is not the world's preferred currency of trade the whole ball of wax unwinds,

no more printing free money to pay off the massive debt. For real, endless deficits WILL matter!

Inflation will gallop and interest rates will spiral...the deal with the world that America gets to be the world's policeman in return for printing money for free would be over...the cop is corrupt.

"Much of American economic and global power rests on the universal use of the dollar as the settlements and reserve currency of choice. It allows the United States, among other things, to run huge trade and budget deficits and to impose crippling economic sanctions on other countries. If the American dollar became overnight a exotic national currency like Turkey’s Lira, then in order to balance its accounts and pay for its deficit, the U.S. would have to raise interest rates to attract foreign currencies, even if that meant crippling business and home finance."