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The Dollar Is Dead

mathmeetsmoney.substack.com

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Re: The Dollar Is Dead

#21

Post by dia80 »

saubeidl wrote: post #16
dia80 wrote: post #12

Even if the dollar was "dead" the time and effort required by the world economy to switch away from the dollar system would be enormous so not much is likely to happen quicker than a few decades.

I think a lot depends on whether the US keeps being an unreliable actor and thus a pain to deal with. If there's enough pain, it'll outweigh the pain of switching.

If you are using the dollar right now, what pain are you taking? None. What's actually happened? US added some tariffs and became a bit more isolationist and the Fed has lost some independence. Might not bode well for the future but has very little impact on today.

Re: The Dollar Is Dead

#22

Post by earnestinger »

ofalkaed wrote: post #9

Is there any other country with both the court system and wealth required to back up being the global reserve currency? I don't think there is and I don't see a viable contender showing up in the near future.

Why court system is relevant for the currency?

I assume British courts can enforce contracts that deal in dollars.

Re: The Dollar Is Dead

#24

Post by senko »

lvl155 wrote: post #17

USD strength comes from military. Just as it was the case with all other currencies in the past. Do you see anyone challenging the US in a conflict? China won’t even invade Taiwan because they are afraid. ‘Nuff said.

What, if I (a European) decide not to buy American treasuries, a squad of Marines is going to bust my front door?

Re: The Dollar Is Dead

#25

Post by echoangle »

shiandow wrote: post #13

Substack has got to be the worst medium for articles with graphs. There seems to be no way to zoom in or view a larger version of tge image.

The graphs are just images, and tapping them opens a lightbox for me. On desktop you could also just right click and open the image in a new tab and zoom there, and on mobile you can just zoom on the page itself.

Re: The Dollar Is Dead

#26

Post by water9 »

Ekaros wrote: post #18
kccqzy wrote: post #10

Earlier quoted context omitted.

I agree with you. I don't even think in the near future there will be a single global reserve currency. There will be multiple ones, all of which weaker in terms of power and influence than the dollar.

Do you even need singular global currency in modern world? Where every transaction can be in essence instant if there was desire. And everything is digital. Overall it is rather different world and things can be done different than before.

The United States won’t let their reserve currency go without a fight

Re: The Dollar Is Dead

#27

Post by lawlessone »

water9 wrote: post #23
lawlessone wrote: post #8

People blamed covid to much for the global economic turmoil. But we don't have covid this time. We do have the same guy in the White House again though...

[flagged]

>Biden was president for all but nine months of Covid but don’t let facts get in your way

Yeah and?

It's easier to turn a bike than a containership.

Re: The Dollar Is Dead

#29

Post by Workaccount2 »

The country is getting forced by markets into realizing pain for overspending, and only congress can manage this pain. Manage the pain, not remove it is key here. Manage it.

Conrgess is totally inept and ridiculously politicized, so it's unlikely they will do anything except make the problem worse.

That leaves only the natural fall out of refusing to acknowledge a financial injury before going out on the field to play hard for your voters.

Inflation. The US will be forced, it will not decide, but be forced, to inflate away its debt. Which means that people who cannot bury their wealth in (non-treasury!) assets will pay off the debt.

Re: The Dollar Is Dead

#30

Post by UltraSane »

water9 wrote: post #23
lawlessone wrote: post #8

People blamed covid to much for the global economic turmoil. But we don't have covid this time. We do have the same guy in the White House again though...

[flagged]

Biden is competent and chooses competent people. Trump is NOT competent and hire incompetent people and fires competent people.
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