For a while, but nations with twin deficits (trade and fiscal) historically saw their currency lose value, which was a natural correcting mechanism to close ino

For a while, but nations with twin deficits (trade and fiscal) historically saw their currency lose value, which was a natural correcting mechanism to close inordinately large imbalances, which US has.. massively. Of course what sustains this is $ as global reserve and for most of last few decades need for dollars to buy oil These things are changing. China's size and demand for commodities pushes oil exporters and commodity exporters more and more to accepting yuan. US loss of industry on the margins means $ has less use as reserve. Why stock pile dollars and treasuries if you anticipate large devaluation (deficits) in the future and are purchasing more goods from China? What does US do as a result? Sanction and or invade oil exporters trading for other currencies. Iraq, Iran, Syria, Venezuela, Russia. Nordstream 2 is a big one. Germany and Europe perfectly content to buy cheaper oil from Russia going forward. Much less need for $ though, as a result. Thus, this overvalued $ (based on balance of trade fundamentals) won't perpetuate as it has previously.