I've heard this argument before, and after reading a lot about it (and breaking out some of my old economics textbooks) I'm not really sure what to make of it.

I've heard this argument before, and after reading a lot about it (and breaking out some of my old economics textbooks) I'm not really sure what to make of it. I'm undecided on if the dollar as the "world" reserve currency is actually a good thing for regular Americans. It certainly gives the American government a lever of power that other countries do not have, but where I part ways with the prevailing wisdom on this (the wisdom that insists this is a worthwhile arrangement) is when we talk about what the United States uses this power for. Folks who've lost their jobs because of crappy trade deals, or see their towns evaporate because of global capital movement, feel no comfort from the fact that foreign banks and governments "seek safety in holding US dollars". One would expect that this power would be used to enrich America. This isn't what's happening, so I'm frankly willing to part with the whole deal.