One of the things all these pundits neglect when they focus on the structural drawbacks of the dollar is the existence of a viable alternative. To be a real al

One of the things all these pundits neglect when they focus on the structural drawbacks of the dollar is the existence of a viable alternative. To be a real alternative reserve currency, the other currency must have enormous trading liquidity, very significant debt issuance (ie the issuing nation must have voracious debt appetite backed by a huge productive economy), be broadly accepted for trade (ie I can't just convert on my own - my trading partners need to convert as well) and be relatively more stable in both political and market volatility terms. It's not enough for the US/dollar to have problems, the alternative would need to be far better, and there would need to be huge capacity for everyone to be able to buy in without massive market moves leading to a catastrophic stampede for the exits. I personally think we will see (and are in fact already seeing) a gradual shift from absolute dollar hegemony to a more mixed picture but I think it will never amount to actual 'dedollarization' but more likely a situation in which you can trade in RMB, you can trade in EUR or you can trade in USD and there will be an increase in Eurobonds etc where nations raise debt in these foreign currencies as well as USD or their domestic currency to provide trading liquidity.