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The Dollar debt denominated system either blows up taking down American hegemony with it or the Fed, et al. manages to inflate its way out of the debt and Ameri
by zozin 6y ago
The Dollar debt denominated system either blows up taking down American hegemony with it or the Fed, et al. manages to inflate its way out of the debt and America prospers while the rest of the world lags behind. Given that the two other centers of power (EU and China) are as inimical towards each other as China is to the US, I doubt a non-Dollar alternative springs up any time soon. I wouldn't start betting against America any time soon.
- johanneskanybal 6y agoIt's interesting to me not being able to imagine a world where the dollar is less important. Every other country on the planet doesn't need their currency to be the global standard to be successful. You'll be fine when that inevitably happens too.
- bubbleRefuge 6y agoNot sure why you are getting downvoted ? The crux of it is that the rest of world(ROW) wishes to net export to America and America wishes to net import. So ROW, wants to save dollars and maintain a relatively stable exchange rate in order for prices to remain attractive. Unless and untill someone else steps up as net import for ROW, I don't see it happening. Also, we benefit from this world order because ROW spends bares the real world costs of production: labor, pollution, raw materials, etc where as we bare the monetary costs which are not 'real' world costs and you could argue since there is no gold standard, monetary costs are just the entering numbers into a spreadsheet. Its a racket.