Timber. Firstly, let me say that I don't spend much time on HC. I turn it off during trading hours and often don't read it again for days. I just noticed this thread is still open, and noticed your question. So to reply to your, "Why would a loss of currency dominance force the US onto the Gold Standard?"
Well the US$ has held it's strength, AMONGST OTHER THINGS, by the fear of the gun. One eg. Saudi Arabia would probably return to 1920s Arabia if they didn't buy USBonds with their oil money. The military strength of the US backing has been sufficient to keep the Saud Family in control for the last 70+ years.
Now if any coalition was to form, between the BRICs, and say if either Japan and/or Saudi Arabia were to join, then all this American confetti may not be accepted by the new coalition. And if this new coalition was to form some sort of Gold Standard the US, now no longer being the bully on the block, would need to follow. Yes, these major lenders to the US would lose most of the values of their reserves, but they could now afford to if some strong coalition was to bond.
I don't wish to debate this ad infinitum, but China is well on it's way towards world supremacy as far as GDP is concerned. The new leadership is already searching for ways to boost local consumption, and not be so reliant on the West for their manufacturing. (ATM China's GDP is about half of the US'. Local consuption forms 33% of China's GDP and 66% of the US'. If China's consumption was to rise to say 50% of GDP, economy to grow by 8% and and the Yuan to strengthen by 20% to the US$, this would be enough to match the US' GDP in US$ terms within 5 years.)
China, Japan and Russia each, IMO, would like to shove it up the US. Each has it's own vendetta.
And the US would have a fractured Europe and Canada to trade. Thankfully, the unconventional oil and gas from sands and shale will bolster Nth America for a while.
As an aside, someone mentioned steak and mince. During Keating's 1990 recession, the NAB held a seminar for distinguished guests, (not me), and asked if anyone's business was growing. One quest only raised his hand. When asked his business! Making sausage skins.
