Exchange rates are indeed set by markets, but then all a central bank has to do to devalue its currency is to sell its own currency for another (or buy assets denominated in another currency, which is essentially the same thing with extra steps)

At the crudest level, what do you suppose would happen if the U.S. Treasury/Federal Reserve suddenly decide that every dollar-denominated account of $n got a "stimulus payment" of $2n?

I'm the GP and I responded to another comment that my views are influenced by the in-depth articles written by Lyn Alden: https://www.lynalden.com/fraying-petrodollar-system/

It's quite a long read, but I can tell you it doesn't come from a libertarian perspective. It does touch on Bitcoin, but near the end in one of a few theoretical "where things could go" perspective.

>"I think it would represent a fairly strong change in global power structures, but like you I don’t think the sky would fall."

Agreed, it would be shocking but life would go on. We would just have to live with a new international monetary paradigm.

Gotcha. The article itself doesn't go into the global power aspect, but I was looking at it through the lens of implications. Mainly, how the trade deficit has made us particularly vulnerable to supply chain disruptions and how the domestic knowledge to produce certain vital things (like chip manufacturing) has been gutted. Confidence in the US and it's ability to deliver on it's obligations also diminishes as the debt grows and the growth of our economy stalls. I just don't see how we can grow our way out of debt after reading just how badly the deck is stacked against non-tech and non-intellectual sectors of the economy.