If the US becomes insolvent, that would severely impact the USD. But other currencies will not try to follow the USD, there would be no point in that. The USD would just lose more status as an anchoring point. The US is also not a major oil exporter, so presumably most oil will trade for other currencies, rather than try to sell for an inflationary currency.

In short, if the US becomes insolvent, the rest of the world will largely ignore what happens in the (at that point) 8th economy in the world, and mostly try to untie their economy from it.

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petcat 6 hours ago | parent | next [-]

> The US is also not a major oil exporter

I believe this is wrong? USA is the largest oil producer in the world, and also one of the 5 largest oil exporters.

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gruez 6 hours ago | parent [-]

"Largest producer" != "largest exporter"

	▲	cmiles8 5 hours ago \| parent \| next [-]
		The US is the largest exporter of oil and refined products. Saudi Arabia is the largest exporter of crude oil.
	▲	petcat 6 hours ago \| parent \| prev [-]
		Yes I said that. Largest producer, and 4th largest exporter.

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GJim 6 hours ago | parent | prev [-]

> and mostly try to untie their economy from it.

That is already happening.

The rest of the world is finding the likes of China to be more stable and predictable trading partners than the USA.

	▲	mrngld 5 hours ago \| parent [-]
		Absolutely no one serious thinks that, but when you feel like you need to diversify you don't have to find a like-for-like replacement. Any port in a storm. Just consult Google. All a country has to do to find itself on the receiving end of punishing Chinese trade actions is being mildly critical of China in the wrong way, and next thing they know their exporters to China report being held up for months. The EU has taken offense at how China kicks around smaller EU members, Australia has been on the receiving end of it more than once. If you'd said the EU might be seen as a relatively more stable trading partner, that may be true, the EU does seem to be fairly happy deindustrializing itself. Though it's fueling a rise in the fractured politics there too.