The US has a problem called "Triffin's Dilemma". Because the USD was chosen as the global reserve currency, as "globalization" increased so did the demand for USD. Since the USD has a "premium" built in (due to it's reserve status), this causes all other countries to have a "currency edge" in terms of exports. This results in a trade imbalance - the US always having a trade deficit. This then leads to $40T of debt. Of course, not all of that $40T can be attributed to the trade imbalance, but much of it can, and ultimately you will end up in the same place. Keyne's warned against the USD reserve currency status, in favor of a neutral "global credit", but was ignored by the decision makers who understood the near-term advantages of reserve currency status. At some point, and not in some distant future, a neutral reserve currency will need to be established to resolve this dilemma, and that will likely be gold. The Chinese certainly think so. Recently, gold reserves surpassed US treasuries in reserve holdings. Some of it due to the rise in price of gold and the fall in price of treasuries, but the trend is clear.
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