"Dollars" and Hegemony

In 1971, when we went of the gold standard lite, many people predicted immediate ruin.  No, we've got at least 40 years, and maybe longer.  Yes it will crack up, but fast, or slow?

So no, manufacturing productivity cannot explain the diverging trend in employment from the 1970s, but the rapid expansion of ‘dollar’ issuance can.
Instead of relying on increased productivity domestically, Americans exorbitant privilege made sure they could consume tradable goods from vassal states such as Germany, Japan and South Korea more or less for free.
When the Chinese voluntarily entered the scheme of getting paid in non-redeemable claims to non-existent US manufacturing output the edifice took on a whole new dimension. The paradox of accepting these claims is so absurd simply because had China and the vassal states not accepted them, they would continue to be money good; securely backed by a healthy manufacturing base. It wasn’t until the Americans were free to issue unlimited amounts of ‘dollars’ that these claims lost their soundness in a rambunctious belief in the never-ending global supremacy of US manufacturing.

I hope it blows slow, so I can make money in a leisurely manner off it...

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