Every dollar in purchasing power that the savers, which are you and I, are losing every year — that goes to the benefit of the borrower, which in this case is the Federal government.
If you follow the geopolitics, you might reasonably conclude that the dollar’s dominance has peaked and is now declining. The SCO appears to believe there can be a transition away from the dollar, an idea that could turn out to be dangerously wrong at a time of great but generally unrecognised currency fragility. At the heart of the issue there is a worrying lack of distinction between the dollar’s reserve function and its function as the monetary standard from when it replaced gold in 1971. -Alasdair Macleod