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I think the value that the US receives for the dollar being the world reserve currency can be best measured this way yes. The US doesn't have a very high GDP b

by harryh 6y ago

I think the value that the US receives for the dollar being the world reserve currency can be best measured this way yes. The US doesn't have a very high GDP because of the dollar reserve currency status. It has a high GDP because it is one of the most technically advanced nations in the world and also has quite a high population. Those things combined enable it to produce a lot of stuff every year.

nine_zeros 6y ago
On currency front, I'd recommend reading up on what happened with the previous reserve currency and see how it was overvalued and ultimately overtaken by US dollar. As for GDP, technology has always been the reason for American GDP. But today, China has caught up technologically and they still have more than 50% of the country yet to develop. That's how much China has left to grow. The direction is clear. Once the US dollar is not the reserve, the dollar will devalue fast and all the statistics which show US number 1 will be up for correction. GDP is one of it.
- harryh 6y ago
  You're reversing cause and effect here. Previous countries didn't lose their preeminent places in the world because their currency stopped being the world reserve. Their currencies stopped being the world reserve because the countries lost their preeminent places.
  - nine_zeros 6y ago
    I'm contending that the US is losing its preeminent place as we speak and we can see it making a lot of people nervous.
    - harryh 6y ago
      At the top of the thread, you said: "Our wealth in America is only because we are the reserve currency." This was the point I was disagreeing with. You are now saying something different. That's fine. I think there is some truth to what you are saying now, though personally I don't think the situation is as dire as you seem to. The UK used to rule of the world. It doesn't anymore. It's still a fine place to live.

by harryh 6y ago

nine_zeros 6y ago

On currency front, I'd recommend reading up on what happened with the previous reserve currency and see how it was overvalued and ultimately overtaken by US dollar. As for GDP, technology has always been the reason for American GDP. But today, China has caught up technologically and they still have more than 50% of the country yet to develop. That's how much China has left to grow. The direction is clear. Once the US dollar is not the reserve, the dollar will devalue fast and all the statistics which show US number 1 will be up for correction. GDP is one of it.

harryh 6y ago
You're reversing cause and effect here. Previous countries didn't lose their preeminent places in the world because their currency stopped being the world reserve. Their currencies stopped being the world reserve because the countries lost their preeminent places.
- nine_zeros 6y ago
  I'm contending that the US is losing its preeminent place as we speak and we can see it making a lot of people nervous.
  - harryh 6y ago
    At the top of the thread, you said: "Our wealth in America is only because we are the reserve currency." This was the point I was disagreeing with. You are now saying something different. That's fine. I think there is some truth to what you are saying now, though personally I don't think the situation is as dire as you seem to. The UK used to rule of the world. It doesn't anymore. It's still a fine place to live.