The ongoing calls for a new world reserve currency, made by China, Russia, India and Brazil, among others, are newsworthy.
While nearly impossible to achieve in the short run, this jawboning against the dollar has had negative consequences for the greenback, and more battering could be on the way. The problem, though, is that few legitimate alternatives to the dollar exist. Not to mention that the very countries calling for a new reserve currency make most of their money dumping cheap imports into the U.S.
While I am not a protectionist, why doesn't the Obama administration publicly remind the dollar-bashers that our open markets provide them with excess foreign reserves and unfettered access to our financial markets? It is hardly a reciprocal relationship and could be less so if they continue to complain about making money off us while trying to siphon money away from us.
The dumping of dollars would be a process of "mutually assured destruction," as it was with the arms race and nuclear proliferation during the Cold War. I suspect this is all talk and political posturing: The countries, acting as if their economies are superior to ours, are entirely dependent on the U.S. consumer for their newfound wealth.....