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It seems that people forecasting the collapse of the dollar are mostly doing it from a social perspective i.e. "America is collapsing under the weight of privat
by WarmWash 2mo ago
It seems that people forecasting the collapse of the dollar are mostly doing it from a social perspective i.e. "America is collapsing under the weight of private healthcare, anti-immigration, tariffs, and the erosion of our allies; the dollar is done for"
But the reality is that financial markets don't really have a soul, and just care about economics. By all accounts, the American economy is doing excellent right now and dollars are still in heavy demand.
- watwut 2mo agoIts international strength is collapsing due to weight of Iran war, being untrustworthy partner, rupture from allies who supported it before and China going up. That means countries doing different long term strategic decisions, because they have no other reasonable choice. Overall and overtime, that will weaken demand for dollar and what kind of trades other countries are willing to enter.
- pocksuppet 2mo agoBut what holds the USD as the reserve currency any more besides network effect inertia? It used to be the most stable country and one of the most prosperous. Both no longer true.