"So whereas the USA can easily get deflation they will may get hyperinflation but will never have a balance of payment crisis because the usd is a reserve currency. All they need to do is to print more usd."
The USA can get deflation or hyperinflation if politics so determine, because as long as a determined central bank so wants both can be adverted, but at a cost which may not be politically acceptable.
There is no impediment to the US experiencing a balance of payments crises. For that to happen all that is needed is a Wile E. Coyote moment when investors realize that the dollar’s value doesn’t make sense. This under the assumption that investors suffer from myopia and cannot see the long term need for a decline in the dollar. Under this scenario, year after year they fail to see that the dollar needs do depreciate until all of a sudden they realize that the value of the dollar is much overvalued and all run for the door at the same time.
Wile E. Coyote moment: The moment when Wile E. Coyote runs off a cliff to plunge as soon as he notices there's nothing under his feet
