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When a country controls the world reserve currency they need to net export dollars, which means they need to import more goods than they export, satisfying the
by FloorEgg 2y ago
When a country controls the world reserve currency they need to net export dollars, which means they need to import more goods than they export, satisfying the world's demand for dollars.
When a country doesn't control the world reserve currency, and there is no global demand for their currency, they cannot sustain a significant imbalance of importing more than they export without devaluing their own currency and causing hyperinflation.
The US controlled the world reserve currency through the bretton woods era with a fixed currency, successfully transitioned to neo liberal era with a floating currency, and is now going through another transition into something new.
If the USD loses its reserve currency status, or if it's extremely weakened, then the US may need to reconfigure its economy accordingly in order to prosper again.
The administration may say they are doing what they are doing for one reason, the media may make up another, and the actual reason may be yet another.