Since the US dollar is used as the world’s reserve currency, does this provide the United States greater financial security?
Absolutely not…. Being the world reserve currency does not entitle us to any special treatment. I have heard some experts use the analogy that we (the US) own the casino and the house always wins. The same rules of finance and economics apply to all countries in the same manner. If a country continues to deficit spend and borrow money, the country is still obligated to payback the monies owed. I think having the world reserve currency status is a symbol of stability and strength. However, the Federal Reserve’s QE1, QE2, and QE3 (i.e., printing money) is jeopardizes this status and could be the nail in the coffin to our economic system. What are your thoughts?