[quote=scaredycat]reserve currency status matters, I think. i mean, isn’t part of the enormous demand for dolalrs the fact that that’s the unit business is done in? if no one did business in dolalrs, there wouldn’t be as much demand, we couldn’t print em, and we’d have a lot less money flowing throught he system. I geuss i don’t understand how you can say that status is irrelevant to the value of the dolalr.[/quote]
The demand for dollars in countries like China and Japan exists because we’re one of their biggest export markets. If they stop buying our dollars, exchange rate adjusts, their exports fall, and they’ll have mass unemployment and riots on their hands. Do they want that?