Latest Trump idiocy , suggests forcing other countries to maintain the reserve status of the US$ , with a 100% tariff on goods if they don't toe the line. This would , of course, be counter productive. My ongoing derision of Pints " dedollarisation " and Brics arguments , suddenly looks foolish.
As I think about the medium to long term effects of Trump trying to reinstate 18th and 19th century mercantilism , it suggest that if he wins , sell everything except gold and A$ . Reserve currency status is these days , mostly , based on confidence and certainty. The US's misuse of the reserve status in the past few decades has put on strain on that confidence. This sort of action would make it imperative for countries to accelerate the process of dedollarisation. My timetable for that , would change from 3 to 4 decades , to not far past the end of the decade. The economic dislocation would be horrific.
