By precipitating industrial erosion, the dollar’s supremacy undermines the foundational sources of American might The dollar’s reserve status grants the US the luxury of comparatively cheap borrowing and chronic deficits , even as a systemically overvalued currency drives industrial erosion on a vast and clearly measurable scale. To crown injury with indignity, this attrition imperils the strategic foundations of American power. Beyond deindustrialization: The distinct logic of hollowing-out