[weatherlite]

I agree, losing reserve currency status would make American gdp / living standards to come way closer to Europe for the simple fact it won't be able to permanently increase its debt deficits. However its far from clear losing reserve status is going to happen, sure some countries will try to diversify but others are probably too tight inside the American umbrella (for defense for example).

But yeah, surprises can happen so interesting times.

[sph]

> would make American gdp / living standards to come way closer to Europe

Why are you making it sound like EU is a third world country? Are you aware that living standards are higher in many European countries than the US, right?

[weatherlite]

> Are you aware that living standards are higher in many European countries than the US, right?

If we measure the total pie then its much smaller in Europe than in the U.S (I mean total wealth/gdp per capita). Only small countries like Norway or Switzerland have high gdp, in France or Germany its almost 50% lower than in the U.S.

Now the pie does not distribute equally in the U.S that's true, but still, there are tons of millionaires in the U.S and I mean pretty regular people (doctors, finance, software devs etc) that had they lived in Europe they would have been comfortable and nothing more. think something like 100k Euro a year (at best) instead of 3-5 times as much which is what they make in the U.S. If the U.S loses reserve status there just won't be enough money to go around for those salaries, or if there will there will be a horrible inflation, either way it just wont be sustainable.

P.S - lots of middle class people in the so called rich European countries like Germany or the Netherlands cannot afford heating anymore. So no, it is definitely not third world but its also not particulalrly rich. The main advantage though is Europe has mostly free healthcare and the U.S is an absolute mismanaged mess in that regard.

[mercutio2]

No. They’re not, anywhere in Europe. This is a mystifying talking point based on wishful thinking and vastly overestimating the non-monetary value of a larger social safety net. The median US citizen is much, much richer. The first quintile US citizen is fairly comparable to first quintile Europeans in income and in-kind transfers.

But it is certainly the case Trump is trying to bring US income down to something closer to EU levels, which will hopefully cause Congress to get its spine back.

[kergonath]

> others are probably too tight inside the American umbrella (for defense for example).

The UK is reconsidering. If the bloody UK is not confident, who else would be? They might be too tight inside for now, but that is a strategic weakness and it will only go one way. Short of the US making it a satellite, it will only loosen.

[thiagoharry]

> I agree, losing reserve currency status would make American gdp / living standards to come way closer to Europe

Why do you think that the standard of living would become better after losing reserve?