Commentary As more countries copy the Federal Reserve’s monetary policy without the global demand for the U.S. dollar, financing trade and fiscal deficits by printing a weakening currency, nations become more dependent on the U.S. dollar. Neither domestic nor international citizens demand local currency, and governments continue to build large fiscal and trade imbalances believing the magic money tree will solve everything. However, as confidence in their domestic currency collapses, global U.S. dollar-denominated debt soars, because very few investors want local currency risk and central banks need to build U.S. dollar reserves to cushion the monetary debasement blow. Implementing aggressive so-called expansionary policies almost always backfires, because the impact on growth of large spending plans is minimal, and the destruction of the purchasing power of the currency rises. Governments always want to believe that they’ll be able to disguise their imbalances with monetary debasement, but the effect is the opposite. …