Re:The Grapes of Wrath was banned in the USSR because showed...
by refurb on Friday January 20, 2023 @01:23AM
(#34449814)
But you still haven’t answered the question - if other countries have as strong (or stronger) currency than the US, then clearly the US could also have a strong currency without being the global reserve?
Fact: The USD has large foreign demand which does not exist for other currencies.
Fact: If more currency is demanded, it strengthens the currency in a relative sense.
Fact: Therefore the USD is stronger than it would be otherwise, considering only local demand.
Your whole counterargument seems to be based on a misunderstanding of real vs nominal. To say 1 Euro > 1 USD means people in Euro earning countries have higher purchasing power is simply wrong. All currency values are nominal.
Fact: If USD money supply doubled overnight and all holders got 2x the amount and wages/prices adjusted automatically, the Euro would appreciate 2x against the dollar.
Fact: That does not mean Euro earning citizens have higher purchasing power. It's an entirely nominal change. 1 hour of labor in USD terms earns the same in purchasing power, regardless of the face value of currency. Same concept as a stock split
Fact: If Euro became the reserve currency tomorrow, Euro-holders would have more purchasing power due to foreign demand making each unit of currency more valuable in a relative sense than it was previously.
Fact: If USD lost reserve currency status, it would weaken relative to other currencies.
None of these are disputed, but you can believe whatever you want.