Regardless of what people say about China using its own currency most of the world still does trade in the USD.
Doesn't really matter if they borrow in the Yuan to buy oil it is paid for in USD for the most part.
The US has waged war to stop countries paying for oil in Gold and other currencies particularly in the ME.
Just an example.
World debt will go up significantly if the USD goes up. Then you have the damage to US exports with a strong dollar. As an example I have stopped buying US made products because of the cost. When my rideon breaks next time it will be scrapped as the parts are just too expensive now. Two years ago a drive belt for the cutter deck cost $38 aud aprox, about a month ago it cost me nearly $60aud and I go through about 3 or 4 a year. I know that is a trifling example but still that is what the USD does to US exports.
Here is another trifling example. I went to buy a new wood hand planer and I like the US made stuff. It is a planer used to make stringed instruments. A US made planer costs about $240usd plus about $50 usd for postage. One made in the UK (Stanley) is about $170 -185aud in Australia. If you want to buy a Chinese similar tool it is about $130aud delivered to the door. I don't buy Chinese if I cant avoid it but other people that use these tools tell me they are good.
This is and will hit the US economy and jobs more in the near future if the USD rises.
While these examples may seem trifling they are an example of what the USD and falling currencies are doing to trade.
Then you have the EU of which the US is its biggest trading partner using USD.
