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Losing the reserve‑currency status would cause a catastrophic drop in US living standards.
  • If the dollar stops being the primary global reserve, the US would lose the ability to finance its deficits cheaply.
  • Balaji estimates living standards could fall by 50‑99 % because the dollar’s purchasing power would collapse.
  • The loss would also trigger a wave of de‑valuation for assets priced in dollars, destabilizing markets worldwide.
  • The US’s reliance on dollar‑based debt makes this a high‑stakes gamble.
  • Preventing this outcome requires either retaining the reserve status or transitioning to a new monetary system (e.g., Bitcoin).
Balaji SrinivasanThe Peter McCormack Show00:49:28

Supporting quotes

If the dollar loses reserve status, living standards drop 50‑99%. Balaji Srinivasan
The dollar is the only thing that keeps the US standard of living. Balaji Srinivasan

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