the view of some within the Trump administration that the reserve currency status of the dollar is more of a burden to the US economy than a blessing.
Obviously the Trump administration is dominated by economic morons.
I’m sure China and EU would gladly take that “burden” off USA. And while that makes the USD decline, it will increase inflation in USA, both because imports are more expensive, but also because American goods will be worth more on export markets and be more favorable to American companies to sell outside USA, again increasing prices in USA to compete with the more attractive export market. So the result is to either export, or sell at home at higher prices.
The selling off of USD will also increase interest rates, making it more expensive to pay interest on federal and other public debts.
Together with a less attractive home market this will cause investments to drop. We actually saw that already 2 days after the insane tariffs were announced, and they had only been in force for a few hours!!!
But yes I can see how it must be confusing to the morons in the Trump administration whether the reserve currency is more a burden than an advantage. Because everything is confusing to them, but somehow they still manage to always make the wrong decisions. If it was mere stupidity, it should be closer to 50/50!! So maybe something else is going on too?
Yes and of course the advantage depends on how that is managed. If you don’t use it to invest, the advantage isn’t as great. But it creates a huge amount of
surplusinflux to the economy, that stimulates economic development.