The world is rich and getting richer. The quality of life outside of the US is rising.
Europeans might disagree
De-dollarization: Is the US dollar losing its dominance? (2025)
101–110 of 913 posts
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#102Earlier quoted context omitted.
It isn't prohibited by the constitution and was created as an independent body. You are correct that it wasn't specifically outlined by the constitution but that's an empty statement - the constitution included the allowance of the creation of agencies and laws outside of itself... that's the main power and strength of the constitution. Your statement was equivalent to saying that Hacker News has no constitutional ri…
The 10th amendment limits the federal government to the enumerated powers. So your argument that it "isn't prohibited" isn't how this works. You have to justify it under an enumerated power (which, you might well be able to do, though this is debatable).
> The 10th amendment limits the federal government to the enumerated powers.
federal reserve is not government... that's kinda the entire point)
its why current US admin is being so butthurt about it, it's not under its control.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#103For those who are not bothering to read this,the article essentially states that de-dollarization is happening in pockets (e.g., reserves down to ~58-60%, Treasuries foreign ownership at 30%), but the dollar's core dominance persists. What would replace it? I guess the options are Yuan, Gold, Oil or maybe BRICS in the future, none of which are safe, stable, and liquid.
Euro?
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#104Obama during affordable healthcare act discovered they were very dependent on other countries. This was very visible during covid and the 'supply chain' breakdown.
Obama started a process, Biden and Trump are in lockstep. They've reduced this issue by about 1/3rd by 2024. Trumps' tariffs are almost certainly going to be upheld by the supreme court.
This has led to a reshoring boom and trillions of new investment in the usa. Estimates seem to suggest only a marginal improvement of about 3%, so roughly another 20% improvement.
But fixing the very broken trade balances for the USA has long term benefit but it will result in a strong USD, but weaker reserve currency. Obviously the USA is rapidly moving away from bretton woods and being the world police.
They will drop below 50%, but nobody else is there to pick up the reserve currency crown. They get all the benefits of seignoiorage and very little of the downsides for decades.
Their dominance is over but they clearly saw that the cost-benefit was not worth continuing into the future.
Meanwhile, since they stop being the world police and reshored the important things. They dont care about the stability of global trade. Instead their super carrier groups will move to poke their nose only in their own business. You're going to see a fast shift from the usa being hated to being loved over the next 10-20 years.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#105If the goal is to make US goods attractive to other countries and to decrease our trade deficit (not saying I agree with this goal), either the dollar has to become fundamentally weaker or the goods have to become more valuable. The latter feels more difficult than the former at this point. However, the side effects of a weaker dollar may not be worth weakening it.
It depends on how this happens. Labor would still be more expensive here than developing economies. We could easily just end up with a weaker dollar and floundering manufacturing, which means more inflation.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#106The US century is already over. It's just that a lot of US citizens don't see that. De-dollarization will happen when one is a traitor to it's allies
Hopes or morality do not strictly dictate power as much as we might wish it to be true.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#107For those who are not bothering to read this,the article essentially states that de-dollarization is happening in pockets (e.g., reserves down to ~58-60%, Treasuries foreign ownership at 30%), but the dollar's core dominance persists. What would replace it? I guess the options are Yuan, Gold, Oil or maybe BRICS in the future, none of which are safe, stable, and liquid.
As a long term Gold and Oil pretty much are
Oil price is highly volatile for it to be reserve currency. A mix of Gold, Yuan, Euro, Dollar makes more sense.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#108The issue is that there isn't a great alternative. The euro is difficult to manage because of the diffuse control, pound an even smaller economy, RMB just not global enough (and tough argument to see that happening), gold/bitcoin/whatever not the same inherent stability. Indeed the dollar weakening, but nothing really to take it's place.
The ECB is not diffusely controlled.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#109China is intentionally undermining the dollar in order to try to make the Yuan the world currency[1,2,3]. My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar. Compared to real money (Gold) the S&P500 is down over the past 10 years. [4] 1 - https://www.reddit.com/r/economy/comments/1o2s6qp/yuan_has_s... 2 - https://www.economist.com/china/20…
I don’t think that’s feasible because China’s capital markets aren’t secure for foreign investors and never will be unless China changes the very thing that they want to be. They’d have to open their markets, be open to direct foreign investment, no more China-only ownership of companies, and no more artificial devaluation of the Yuan.
Also the US capital market is huge. Surprisingly huge, even, and there is very little that can change that for the foreseeable future.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#110For those who are not bothering to read this,the article essentially states that de-dollarization is happening in pockets (e.g., reserves down to ~58-60%, Treasuries foreign ownership at 30%), but the dollar's core dominance persists. What would replace it? I guess the options are Yuan, Gold, Oil or maybe BRICS in the future, none of which are safe, stable, and liquid.
Bitcoin