Can the US dollar lose its global reserve position? Sure it can, but not to a country that decides to commit the same monetary follies as the Fed. Most countries are trying to out-inflate the Fed. And that's good for the Fed.
The coronavirus crisis must cause us to rethink the idea governments can manage these situations. It is absolutely true that most private industry can be trusted, because the alternative for poor or unscrupulous providers is failure.
The Federal Reserve's monumental mistake of cutting rates this past week can only be understood in the context of the rising God complex of central planners: an overwhelming combination of ignorance and arrogance.
The coronavirus impact adds to an already weak and bloated global economy that was showing poor growth, high debt, and an evidently disappointing earnings season before any epidemic was included in estimates.
Even if discretionary spending stays flat, total government outlays are estimated to increase by more than $1 trillion, significantly above any measure of tax revenues. And that is without considering a possible recession.
The Edge of Democracy, a new Oscar-nominated documentary about Brazil, gets even basic facts wrong in pushing the idea that Brazil's corrupt and socialist politicians were the saviors of Brazilian democracy.