If I might be so bold to add some minor corrections -
>The USD 'WAS' the world's reserve currency ... many people think it still is, most of them American. It is now just another overabundant commodity with a floating exchange rate pouring out of an open tap.
> and it HAS produced as many USDs as it likes ALREADY, not including the counterfeit market for USD. >It HAS flooded the world with it's currency > but now cannot create a shortage even if it wanted to.
This is reflected in the return to sender rates of exchange where peaople are selling USD against every other pair. Wait until Asian countries decide the USD is not worth a penny.
???Ultimately the US will win any currency war??? How is that?
Not a fly's poop in an ocean of chance if it thinks more QE is needed. Look at the results of UK and EUR since tightening began - this is all about credibility and control.
What is not provided in your scenario above is an explanation of why the USD has fallen against every floating global currency to historical lows almost across the board.
Not saying a poor USD supply side exchange rate is bad - it is what will help save the poor limpless mobsters. But the USD won't see a bottom if they think the answer is supply more of what people don't want now.
Japan started the whirlwind, now it has spread to the US. But Japan has 20 years head start on how to deal with it, while the US is still sitting on the park bench with a gob full of Maccas.
Point being - the axis of economic balance is being shifted away from the US toward Asia - so it will stay this way now. Look for the next bubble in Asia, then India - Africa will be a distant last.
Follow the trail of development by population. The US is now just another temporary supository, I mean depository.
