Declining value may not matter if you get benefits in kind - e.g. China and the US.
When you get to the level of foreign reserves, the games become quite serious. China is allowed to build up U.S. dollars, then the Feds unleash inflation at a level that reduces their international value by about half (see the last three years). Then the myriad ramifications of that policy have all of their effects, such as a pissed-off U.S. populace and a pissed-off Chinese ruling class. Interesting times, indeed. paul spencer
