The Federal Reserve's Real Broad Dollar Index (RTWEXBGS) is 113.51 as of February. Not saying it would crash losing all of that 13.51 excess overnight, but it's still overvalued against foreign currencies.
> it's still overvalued against foreign currencies
That would make imports more expensive and exports more competitive. Some pain, given we run a deficit [1]. But $50bn/month adustment in a $30tn economy is 2%. Not fun. But not a "crash."
(There is a genuine argument to be made that American voters have been rejecting dollar hegemony across multiple elections for a couple of decades.)
> Perpetual trade deficit is modern system of tribute
Probably not. Equatorial Guinea, Palau and Kyrgyzstan run the largest current-account deficits as fractions of GDP [1]. (Current account counts goods and services.)
Resource extraction... High value infra projects in, low value unprocessed resource out.
Edit: Palau is the exception, it's main industry is tourism. Wealthy westerners come and consume and leave. Palau doesn't produce anything so all that consumption must be imported.
US current accounts deficit ~1 trillion annually, greater than your counterexamples' total combined economies. This should be a clue it's not the same mechanism of action.
That would make imports more expensive and exports more competitive. Some pain, given we run a deficit [1]. But $50bn/month adustment in a $30tn economy is 2%. Not fun. But not a "crash."
(There is a genuine argument to be made that American voters have been rejecting dollar hegemony across multiple elections for a couple of decades.)
[1] https://www.bea.gov/data/intl-trade-investment/international...