>China will indeed replace it as the world superpower...
Again, why would this be an issue? I mean, for us here in the USA? Why would we not want to be rid of the "privilege" of being the "super" power in what is clearly a multi-polar world?
Again, why would this be an issue? I mean, for us here in the USA? Why would we not want to be rid of the "privilege" of being the "super" power in what is clearly a multi-polar world?
First, the vast majority of our debt is owed to ourselves, not to foreigners.
Second, what makes our dollars so valuable, is not our status as a super-power, but our willingness to pay it back. Think of it this way, the big ticket items in the US government budget are the military, Medicare/SS, and debt service. Now we hear all the time talk about cuts to the military or medicare/ss. But no one even CONSIDERS talk about cutting debt service. THAT is what makes dollars so valuable. (It's also why the vast majority of them are eaten up by us and not foreigners.)
So I'm not convinced at all that our dollars are valuable because we are a super-power. Russia was a super-power, and no one was stockpiling rubles. Likewise, Switzerland is not a super-power, but everyone should have some swiss francs.
That doesn’t give them leverage to print money inflation-free.
What allows the US to do it is the USD’s status as the leading global reserve and trade currency. That status is based on habit and influence.
I'm not saying that America is innocent (by any means), just that I would rather them hand the torch to a country that's more honest to their own people and operates more openly.
So, China then? At least with party rule, what you get is what you see.