Comment by pault

The US position as the top superpower is what allows it to print its way out of recessions without being crushed by inflation, since all those extra dollars get stashed away in foreign reserves. If the dollar loses that status, the chicken that is the federal debt will finally come home to roost. At least that's my understanding. If the US loses its edge, inflation will go up as growth slows, resulting in something like Japan's lost decade. Not to mention the preferential treatment it gets by having the biggest stick.