A bold statement to say the USA will lose reserve currency status. This talk has been going on for years.
Yes their debt is over a 100 % of their gdp (usually the tipping point towards eventual default), however the reserve currency status allows more power here to service the debt.
Correct me if I’m wrong; inflation makes the scale of debt from a nominal perspective reduce over time. This potentially is bullish for gold and beneficial to the USA as it reduces the real value of their debt.
It is a very complex issue. The USA is still the powerhouse of the world economy in my small minded opinion.
The Bretton Woods 1 monetary system was set up after WW2. Bretton Woods 2 took the USA off the gold standard at the end of the Vietnam war. Talk of Bretton Woods 3 due to the Ukraine War is an interesting topic. It should be bullish for gold. It’s a complex issue. Personally I would be surprised if it eventuates however I could easily be wrong.
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