[jaredklewis]

> Losing reserve status will be damaging to some parts of the american economy and create a boom in others.

The primary effect of losing reserve currency status would be on the government's ability to borrow money. That's going to be a problem since US government debt to GDP ratio is >100%. We have no fiscal discipline now and neither party shows interest in making cuts or raising taxes. DOGE hasn't changed anything yet unfortunately, as daily government outflows are still roughly inline with where they were under Biden. Even if DOGE cut all discretionary spending (obviously impossible), we'd still have a budget deficit and massive existing debt burden.

If we lose reserve currency status, my guess is we'll go full Argentina with hyper inflation as the government prints money to pay debt and fund the government.

[psychlops]

Oh, I think that's inevitable for the reasons you listed. DOGE would need to do way more to actually matter. Observing the current upheaval due to minimal cutting guarantees the future will be Argentina.

The upside is the debt decreases in value as the currency inflates. So there's that.