3 ms·
The perpetual hole in all these stories about the end of dollar hegemony in my mind comes down to alternatives - and there are no large scale alternatives (SGD.
by balderdash 3y ago
The perpetual hole in all these stories about the end of dollar hegemony in my mind comes down to alternatives - and there are no large scale alternatives (SGD.DKK.CHF etc are fine for me, but not global trade). People are going to feel safer in yuan, rupees, or real? Unlikely.
If southern Europe gets its act together, or china trades autocracy for democracy and rule of law, then maybe the dollar has something to worry about.
- TexanFeller 3y agoBefore there wasn't so much incentive to dedollarize, dollar hegemony worked Ok for most people, enough to accept it if only grudgingly. Now major players have large incentives to make it happen. When large incentives exist the market usually eventually finds a way to happen. Now that we have used out financial system as a weapon(Russia) states may see it as a national defense(aka military capability) issue. After we've let inflation run rampant there may be less confidence in our currency, though admittedly many other countries are in the same inflationary boat.
- balderdash 3y agoI don’t disagree with the desire/demand statement - but again who’s is going to step into that gap, that can run large trade deficits, has the deep financial/borrowing markets to fund those deficits, has rule of law etc.? China? Nope. Europe I guess - but doesn’t really offer any advantages over the dollar, who else? No one…