2 ms·
I agree, but I think that is more of a long term concern. The USD will be dumped as the worlds reserve currency but I presume this will be a long and volatile p
by lifty 7y ago
I agree, but I think that is more of a long term concern. The USD will be dumped as the worlds reserve currency but I presume this will be a long and volatile process. There are 2 reasons why I think the USD will slowly be dethroned as the reserve currency: 1) the US has made the USD their weapon in punishing opponents and many countries have already started to think about alternatives. 2) the USG has very big long term unfunded liabilities which will need to be inflated away. China and other big holders of US debt know this, hence, they are trying to slowly come up with alternatives. The good part for the USD is that the alternatives, at the moment, are shit.