New Gold - Part the Sixth

The Manchurian President continues braying that the USofA is the victim of bad the international monetary and trade deals. Day after day. While these missives have explained why it is that the US Buck being the world's reserve currency actually gives us the royal flush in spades hand. The Manchurian President is either too stupid to figure that out, or he's just lying to cover his ass. Blame the global elites and their Democratic enablers. And so on.

Well, today brings yet more reporting that the USofA is gutting lots of the world.

A crumbling currency inflicts many damaging consequences: Companies that borrowed in dollars — the global reserve currency — have to come up with steadily more money in their local currencies to repay U.S. dollar debts. Having to do so also raises risks for the banks that lent to them.

That's the kind of squeeze that ignited the catastrophic 1997-1998 Asian financial crisis. A currency disaster in Thailand infected the entire region, and East Asian economies absorbed devastating damage.
[my emphasis]

We're the victims. Yeah, sure.

And, how might other countries manage this:

And emerging-market countries learned lessons from the debacle two decades ago. Many piled up reserves to fend off speculative assaults on their currencies. At the start of 1997, emerging-market countries' reserves amounted to barely 6 percent of their economic output. Now, they equal nearly 18 percent, according to the Institute of International Finance, a banking trade group.

Guess what?? All the US Buck reserves came from our current account trade deficit. No trade deficit, no expanding New Gold stock, no expanding world market, world market deflation. You don't want to live in that kind of world. Arithmetic doesn't lie. Yummy.