I think reserve-currency status leads to complicated things, some good and some bad for the US. I'm not sure what everything else you're referring to. 1/

But I think reserve-currency status, for better and for worse, is sustained in part by the military protection we offer allies, and a tacit understanding that standardizing on USD is part of the arrangement. 2/

If we are going to destabilize the sense of stable alliance with important, pretty rich allies, we should do it with eyes open about a potential effect on willingness to hold the currency. 3/

Encouraging a shift from the US dollar might be a net positive for the US! 4/

"Exorbitant privilege" in terms of noninflationary expenditure is offset by "exorbitant burden" in terms of drain on domestic demand and impetus toward deindustrialization. Different people can weigh the costs and benefits differently. 5/

(Trump seems to value USD reserve currency though, since he threatens retaliation against countries that seem to pursue an alternative to the dollar.) 6/

In any case, if we start threatening our allies, destabilizing our reserve-currency status is a potential consequence we should weigh. For good or ill. /fin