Yes, when you demonstrate to the world, your Reserve bank can "Steal" anyone's money - in this case, $300B, your system is going to lose a lot of trust from existing customers and prospective customers.
IMHO, a new financial system will develop from this debacle, where the new system will offer security of people and country's deposits.
I am sure all the rich Saudis, UAE, Kuwaitis and Qataris will be having second thoughts about where they should park their surplus funds.
At the very least, they will diversify from USD..
Whether this represent the demise of the USD remains to be seen.
But one thing is certain: the trust is gone.
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