EDITOR NOTE: “American exceptionalism” is a lagging notion. It presumes that what made us “great” as a nation then is what makes us great now. As far as resemblance and continuation, the contrast between then and now can’t be any greater. American savings is far below what it had been. The national debt is far above anything it had been in the past. We’re not the producers we once were. And 30% of our debt is owned by foreign countries, namely China. Exceptionalism or entitlement? What’s to happen to the dollar’s “exorbitant privilege” as a reserve currency? If this weren’t your nation, would you still bet on it?
The world is having serious doubts about the once widely accepted presumption of American exceptionalism.
The era of the U.S. dollar’s “exorbitant privilege” as the world’s primary reserve currency is coming to an end. Then French Finance Minister Valery Giscard d’Estaing coined that phrase in the 1960s largely out of frustration, bemoaning a U.S. that drew freely on the rest of the world to support its over-extended standard of living. For almost 60 years, the world complained but did nothing about it. Those days are over.
Read the full article on Bloomberg