> The global currency must be protected military might

At the current state of geopolitics, this is basically calling for WW3 in the next decade. US economic hegemony is on super shaky ground right now.

I'd be curious what geopolitical framework/elements/theory of power you're basing your analysis on.

Thesis: US global power will continue to wane as long as the domestic situation (socioeconomic, cultural, institutional) worsens and geopolitical multipolarity is established by China. And that's okay, time's up! As long as the US doesn't do something enormously stupid in retaliation.

It's not coming out of a textbook if that's what you're wondering.

So now exploiting the rest of the world is viewed by some as an "economic service"? It is funny how low people will craw to protect their privileges.

Good points.

But will the real manufacturers goods, and now tech, accept such a currency in the future?

Especially, in the light of erratic political leadership that could renege on agreements and impose sanctions unilaterally??

This post is the true meaning of "grift". Anybody that talks about reserve currencies as some sort of military tool instead of because it's the best financial instrument is showing themselves to be deeply disconnected from reality.

Here are the things that make up a reserve currency:

1. Floated

2. No capital controls

3. Respect property rights

4. Have a bond market big enough

5. Have global trust

6. Be willing to have trade deficits

7. Stop export priority mercantilism

8. Have a currency market big enough

Only the US dollar satisfies all of these rules.

Very interesting comment. That being the case, the biggest fallacy is the ability of challenging the authority, as long as the US politics are protected by US sovereignty (even if they involve and affect the rest of the world).

You don't have to be perfect every day, you just need to be better than everyone else averaged over some long period of time.

This is fascinating.

What is this theory called? I'd like to read more.

It's called "a wild overstatement of generally accepted mechanisms".

As but one rebuttal: The European Central Bank has acted mostly in concert with the FED since 2008, "printing" about as much money via quantitative easing and similar mechanisms.

The Euro is nowhere close to the US$ as a reserve currency, and even less as a trade currency.

And yet inflation in Europe has been just as non-existent as it has in the US.

Euro isn’t a reserve currency because of absence of true military powers and dependable justice system that is overly complicated and fragmented to the whims of individual countries. Further, Euro is always risk of countries leaving it and weakening its strength and future. China is still far from developing military powers and world cannot trust that reserve currency won’t be manipulated outright. So, no, there are no real options right now to provide the same economic service.

Well China is absorbing the inflation basically.