I never said "solely". Fact: The USD has large foreign demand which does not exist for other currencies. Fact: If more currency is demanded, it strengthens th

I never said "solely". Fact: The USD has large foreign demand which does not exist for other currencies. Fact: If more currency is demanded, it strengthens the currency in a relative sense. Fact: Therefore the USD is stronger than it would be otherwise, considering only local demand. Your whole counterargument seems to be based on a misunderstanding of real vs nominal. To say 1 Euro > 1 USD means people in Euro earning countries have higher purchasing power is simply wrong. All currency values are nominal. Fact: If USD money supply doubled overnight and all holders got 2x the amount and wages/prices adjusted automatically, the Euro would appreciate 2x against the dollar. Fact: That does not mean Euro earning citizens have higher purchasing power. It's an entirely nominal change. 1 hour of labor in USD terms earns the same in purchasing power, regardless of the face value of currency. Same concept as a stock split Fact: If Euro became the reserve currency tomorrow, Euro-holders would have more purchasing power due to foreign demand making each unit of currency more valuable in a relative sense than it was previously. Fact: If USD lost reserve currency status, it would weaken relative to other currencies. None of these are disputed, but you can believe whatever you want.