Being a global reserve currency is a boon during periods of inflation and a drag during periods of deflation. Given the economic environment since 2008 countrie

Being a global reserve currency is a boon during periods of inflation and a drag during periods of deflation. Given the economic environment since 2008 countries central banks have been fairly aggressively trying to weaken their currencies to stoke inflation and the "benefit" is more a "burden". The loss of our reserve status and the gradual divestiture of USD assets by foreign central banks would have the impact (if gradual) of raising long term borrowing costs, lowering asset prices and increasing wage pressures. Those effects would be uneven across the economy and benefit some people at the expense of others. Generally helping the factory working I Ohio and hurting those who own highly leveraged assets (like US stocks). Most of the benefits of the USD simply accrue because of the size of the US economy which tends to make it less volatile and less prone to "runs" on the currency. Even if the world were to panic about the direction of the US political system there simply isn't anything else big enoug to run to that would seriously tank the dollar. The same cannot be said for the political developments in a counrty the size of Venezuela. These benefits are independent of the reserve status and accrue to the Euro just as much as the USD.