Dethrone ‘King Dollar’

This author is correct on the concept of currency devaluations (it's a race to the bottom in a currency war), but minimizes the harmful effects of inflation.  Google "Triffin dilemma" for a better explanation of the privilege and hazards of holding the global reserve currency.

Like most Keynesian economists and academicians, the author also completely misses the logic behind the Fed extending USDollar hegemony.  If the dollar were to lose its reserve currency status, there would be major dislocations in global trade and financial markets.  Inflation would soar as foreign holders dump USDollars.

http://www.nytimes.com/2014/08/28/opinion/dethrone-king-dollar.html?_r=1&module=ArrowsNav&contentCollection=Opinion&action=keypress&region=FixedLeft&pgtype=article