Who says the US will freely give up their reserve currency status or allow countries to have a choice? The current world monetary system cannot continue on its current trajectory with the Americans printing trillions of US Dollars without expecting other countries to negatively react to the blatant depreciation of their US Dollar denominated assets. Without international support of the US Dollar, it is impossible for it to remain the dominant world reserve currency. This doesn't mean it cannot still be a reserve currency. The USA does afterall have a chokehold with their Petro Dollar system. In my opinion, the US will enforce the Petro Dollar system with a combination of their military and through the CIA, NED, Freedom House and their funded NGOs.
However, this can only prevent the TOTAL breakdown of the US Dollar as a world reserve currency but not its "relative" decline in favor of other currencies. This last part is critically important to why the US economy will in my opinion collapse. Since the US Dollar will lose its complete dominance as the world reserve currency, this will prevent them from printing money at will to fund their balance sheet deficits. In the past, they could effectively steal the economic wealth of other countries because foreign central banks and companies would buy US Dollar denominated treasuries and assets in return for US Dollars that is created from thin air. This costs the US nothing, while they gain the ability to import trillions of dollars of foreign economic output and never fear that they would ever need to pay for it because the US Dollar was until recently expected to retain its title as the world reserve currency forever. So, the collective gross total of all US Dollars given to all countries would on balance always be increasing and never decline. This is the reason why George W. Bush was quoted as saying the US debt was not important. The US budget never needed to be balanced because as long as the US Dollar remains the "dominant" world reserve currency, the debt would increase FOREVER allowing the US to FOREVER steal wealth from the rest of the world, BECAUSE THERE WOULD BE NO OTHER CHOICE since the US Dollar would essentially have a MONOPOLY. However, once the US Dollar is no longer DOMINANT as a reserve currency, I'm not saying it will not be a reserve currency, I mean when it loses it's DOMINANCE as a world reserve currency while still being a reserve currency, the rest of the world will have a choice of where to buy their goods because they could use an alternative world reserve currency for trading those goods. This is how I believe the US will lose its ability to finance their balance sheet deficits via foreign countries, because they will soon lose their ability to steal foreign economic wealth through exchange of US Dollars that are created from nothing.
If the US were successful in convincing China to join the G2, China could then be pressured to support the US Dollar to perpetuity since China would then become part of the Anglo-Saxon world order, aka "Western" world as a junior partner. If this happened, it would be all over for the rest of the developing world and the current world order would be entrenched forever. Unfortunately for the US, China is not cooperating. I'm sure the constant and unrelenting demonization has something to do with that, but in the end, I think it's because China's leadership recognizes that to support the Anglo-Saxon world order, aka "Western" alliance is supporting the same type of exploitative system that persecuted China when it was still weak as so many developing countries still are.
