Obama's Former Chief Economist Calls For An End To US Dollar Reserve Status

This Keynesian economist WANTS USdollar hegemony to end?  Might as well give the dollar its last rights before the hanging.  The death of the USDollar--by suicide.  That will make a great headline.

Next thing we know, the Fed Chairman will be dumping dollars out of a helicopter.   Ooops, it's already happened.

What's that other expression?  Be careful what you wish for; you may get it.

http://mobile.nytimes.com/2014/08/28/opinion/dethrone-king-dollar.html?referrer=&_r=3

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