It's the Deficit Dummy? Well, not really!!!!

[peppertree]

14. Republicans are trying to shatter global faith in the dollar alright

You'll recall that Cheeto raised eyebrows, in his last months in office, by nominating Judy Shelton - a known "gold bug" (gold standard cheerleader) and gold hoarder - to the Fed board.

But the Fed was able to "print" $20 trillion in 2008/09, to cover bad derivatives debts, mostly because the dollar is accepted on sight anywhere in the world regardless of these moves - and because it has no gold standard to constrain it.

Its only real competition is the euro - and the dollar is still preferred three-to-one (hence Trump's interest in Brexit - which was hoped could break up the EU once and for all).

As you illustrated, most other countries don't have this ability: they can "print" money to cover deficits - but only up to a point.

On the other hand, a monetary straitjacket like the gold standard would plummet the country into a deep and lasting depression (FDR got us out, in part, by rescinding it).

So balance, like with so many other things, is indeed the key here: not too tight; not too loose.