Jake: 'The current account position is a consequence, not a cause, of the status of your currency.'

This implies that the current position of the US$ as the world reserve currency is even more precarious than Dobbins and Koenig make it to be, as it would be significantly based on perception. Overplaying one's hand when one has a perceived advantage that is greater than the actual advantage is an excellent way to lose that advantage. That could lead to a catastrophic collapse of the value of the US$. Personally, I would prefer a more gradual rebalancing. I suspect so would China, Russia and the rest of the BRICS.

One proven way to alter such developments as these is war. But that, if it escalated, would likely truly usher in a post-apocalyptic new dark age and catastrophic collapse of human life on earth, along with most other life forms. Again, to some it may seem that the problems are now and the consequences are then. May cool heads prevail.
 

"It is not necessary to have hope in order to persevere."