Paul Krugman Goes Way Off the Rails

There is a lot that I disagree with Paul Kruman on, as far as economics, but his latest comment is beyond his usual confusion. In a blog post, he writes:

I have long argued that reserve-currency status is a much overrated phenomenon — it’s not actually a significant benefit to the country that issues the currency...

Does Krugie not understand basic supply and demand economics?

The percentage of foreign reserves held in the form of dollars is simply massive. In absolute terms. it is well over $6 trillion.

Any significant movement away from holding US dollars as a reserve currency would result in major downward pressure on the dollar on foreign exchange markets and fuel skyrocketing price inflation at home.

It is mind boggling that Krugman doesn't get this pretty basic point.

-RW