So what happens when your currency is no longer a reserve currency? After all, currencies don't exist in a vacuum. Are you not then highly constrained in your

So what happens when your currency is no longer a reserve currency? After all, currencies don't exist in a vacuum. Are you not then highly constrained in your currency creation ability? I would think there might be disastrous implications for foreign trade, upon which the U.S. economy is extremely dependent. Additionally, does this not imply a significant shift in private property rights (possibly to the degree of being unconstitutional)? MMT seems to imply near complete control of the economy of by a central authority. Is there not a major problem with the timing and syncing of inflation (money creation) and deflation (via taxation)? The velocity of transactions and thus the velocity of inflation seems to be far, far greater than the velocity of tax transactions. What's more, our ability to measure inflation is very slow, incomplete, and politicized. There is also no consensus on how to do it. For evidence of this, just go look at the different published inflation numbers and dig into what does and does not get included and the measurement methodologies. > So I recently had a realization that the money the government spends has absolutely no relation to the money the government receives This might be true in the short run, or even over one lifetime that started in in the 1940s, but it may not true in the long run. Ray Dalio has some interesting thoughts on short and long term debt cycles and their relation to money.