When George Soros Broke the British Pound (2014)
It&#x27;s interesting to read this with an eye on current global macroeconomic conditions.<p>The dollar is significantly overvalued today, a result of its status as the global reserve currency.  And the consequences of that are all the same ones mentioned for the pound in the article.  The U.S. has been running a large current account deficit since 1980: we import more than we export.  Our jobs are moving overseas, because it doesn&#x27;t make sense to employ Americans at the wages they demand, because the wages they demand are artificially inflated by the overvalued dollar they&#x27;re paid in.  We need to keep interest rates high relative to peer countries to maintain the dollar&#x27;s reserve status.  We insist - through foreign diplomacy if possible and military intervention if not - that oil-producing companies price their oil in dollars, creating demand for dollars that would otherwise flow through other currencies.  And all of this has been widely reported for the last couple decades.<p>The U.S. has stated that they&#x27;re committed to defending the dollar as the world&#x27;s reserve currency.  What happens when they can&#x27;t, and the collective weight of the market is more than a national government can prop up?