Thesis: The dollar will not be dethroned soon and it will not outlast the American Empire. 1. US rate cuts during crises and deficit spending is necessary for

Thesis: The dollar will not be dethroned soon and it will not outlast the American Empire. 1. US rate cuts during crises and deficit spending is necessary for the global financial system. If the US responded otherwise, it would have been dethroned. the Fed's response to both the global financial crisis and coronavirus crash further entrench the US as the global reserve currency precisely because the "American Empire" exists. Allow me to elaborate. During the GFC, the US became the de facto central bank of the world thanks to Bernanke's liquidity swaps with other central banks. There a great video of him responding to a congress person about this. [0] Remember, since the USD is the global reserve currency, all debt is denominated in dollars, so it's necessary for the survival of the entire system for the primary supplier of USD to relax its policies and ensure devaluation so that other countries don't suffocate from a dollar shortage. The coronavirus crash entrenched the US's role as the global central bank even further since their response was swift and immediate. Dollar swap lines appeared in weeks rather than years and months, and we did not see a global financial collapse as we did in 2008. This liquidity event was just a blip. 2. Debt to GDP is a nonsense metric in this environment. Everyone has massive deficits. The US is at 100%. Let's look at the other countries. Debt to GDP in Japan is 240%. We have EU countries Greece at 174% and Italy at 133% other EUs like France, Belgium and Spain near 100%, Germany at 56%, and the more frugal countries operating at 30-40% debt to GDP. UK is at 85%. Sure China is at 50%, but it has a lot of other problems. 3. Interest rates are negative almost everywhere else. Every country I mentioned in 2 has negative interest rates save China. This will buoy dollar demand over the long run. 4. Other viable alternatives have unstable and untrustworthy government regimes. Let's take China as an example. Do you trust an authoritarian government who has not demonstrated willingness or ability to do 1 to take over as the central bank for the globe? This is a country who has also manipulated its currency in the past. --- Remember fiat currency has power through enforcement and governance. Power in this regime comes from the ability to govern a currency well. Bitcoin will never be a global reserve currency precisely because its supply is restricted and cannot be manipulated to give governments the flexibility to respond to crises. Bretton-Woods collapsed for the same reason. For as long as the US is in good relative standing to other trusted fiat currencies, it will remain the global reserve currency. Over time I could see a system where different currencies dominate different geographies thereby chipping away at US hegemony, but if the American Empire were ever to collapse, the dollar would be a fiat currency with a power vacuum. Who's going to print them dollars? [0]: https://www.youtube.com/watch?v=Rk56d6mPNG0 https://www.youtube.com/watch?v=Rk56d6mPNG0