US may lose reserve currency status: I thought this was big; Bernhard says it's HUGE
I came across this yesterday, thought I should post it, but there wasn't much else around on the meaning of the move. Now, Bernhard at Moom of AL lays out the import here.
Being the reserve currency gives the US a big economic advantage, per Bernhard:
So far the U.S. could borrow cheaply and pay back less in real value than the original loan. That privilege is now going away. The trillions the U.S. currently needs to borrow from abroad will have to be payed back in full. That is a major change in its global power status and will seriously decrease its influence in international policy questions. (My emphasis)
Now, must run. Do read.