The point is that only the US government can print the currency to accommodate this shift back to conservative lending practices. It is US denominated debt after all. And they did want to be the world’s reserve currency. That means they now get to establish global banking standards and get to own an incredible amount of bank paper throughout the world. Otherwise, an alternative will be found and we will likely repeat this all over again in about twenty to forty years in a different form of currency. The US currency bubble will then continue to contract and retreat into the US local market as deleveraging contracts the supply.
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