[Longlius]

What is frequently lost in these discussions is what reserve currency status costs the US - namely in having an overvalued currency. This the primary reason why US labor is not cost competitive with the rest of the world except in the highest value-added industries.

Take away reserve currency status and you suddenly have one of the sharpest currency devaluations in human history without any immediate loss in productivity or value-add. Unleashing the US workforce at that price point is a good way to ensure that no country that isn't already highly-developed will become highly-developed in our lifetimes.

On the article itself, comparisons to the pound sterling are rather confusing. The UK faced financial problems not simply because of a shift in the monetary landscape but also the loss of its former empire which a significant portion of its domestic economy was tied up in.

The US, in comparison, is a resource-rich continental power which conducts most of its 'international' trade with Canada and Mexico (both of which the US is deeply interlinked with logistically).

The fact that people continue to draw comparisons between the UK and US economies is incredibly baffling. It smacks of some kind of 'great cycle' religion.

[anon4754737]

> Unleashing the US workforce at that price point is a good way to ensure that no country that isn't already highly-developed will become highly-developed in our lifetimes.

I find it hard to believe that I’m reading this sentence correctly. Are you suggesting that hurting the US working class while moving an increasingly greater percentage of profits into the hands of the globalist class is actually a good and virtuous thing?

[Longlius]

How did you read that from what I said? The people who would benefit most from de-dollarization would be the US working class working in manufacturing, agriculture, and primary product exports because suddenly their labor would be cost-competitive with other export-oriented economies.

De-dollarization would really be a massive blow to the finance and services class because the US would suddenly be a far less attractive place to park your money whereas it would be good for the class which produces products for export.

Michael Pettis' books have a pretty good coverage of this perspective.