The world is rich and getting richer. The quality of life outside of the US is rising.
Europeans might disagree
There is more to the world than Europe.
De-dollarization: Is the US dollar losing its dominance? (2025)
231–240 of 913 posts
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#232The export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade. Without it, natural FX mechanisms would naturally begin to appreciate their currencies and make their exports uncompetitive.
According to USTR data the EU had a 200bn goods surplus, but a 100bn services deficit in 2024.
So a 100bn deficit out of 800bn total US imports.
The deficit is there, but it's not nearly as lopsided as some reporting would have you believe.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#233The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve. The behavior of the US Government has been very unusual lately, and the independence of the Federal Reserve is actively being challenged. So draw from that whatever conclusions you wish.
It’s not just that This is a gradual decline. From 70% in the 90s to 60% today. Today there are more options like the Euro that didn’t exist in the 90s. People can argue over EU economic stability, but it’s there as reasonable option.
EU can easily pull the plug on Euro as a reserve currency if they confiscate the money of a certain country and give it to another one. That would be the "front fell off" moment for Euro.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#234For 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.
Countries are replacing it with Yuan, Euro, Yen, Gold, Oil, and more stuff.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#235For 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
People downvote this but Bitcoin has some very nice properties:
- easy to verify/impossible to forge (as opposed to gold and paper currency)
- fixed supply (as opposed to paper currency, oil, and even gold)
- easy to transfer from one party to another (as opposed to gold, oil, and physical cash)
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#236Earlier quoted context omitted.
The harsh reality is that a federated state system with a very weak governing body economically and politically is extremely unlikely to be the global trade currency.
Let's what-if a scenario where the Fed is made subservient to the President and the President wants the dials turned to 11, let the next guy deal with the consequences. The dollar isn't indestructible. If not the Euro, what?
Probably a mix of things, including commodities like gold.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#237The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve. The behavior of the US Government has been very unusual lately, and the independence of the Federal Reserve is actively being challenged. So draw from that whatever conclusions you wish.
The Fed and largely US policy has absolutely no effect on the real reserve currency: https://en.wikipedia.org/wiki/Eurodollar
Didn't know that was a real term Mike Pondsmith used for cyberpunk
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#238De-dollarization is one of those things economists love to talk about. The chance of the dollar losing its reserve currency status is slim-to-none. No matter how bizarre the US is, nobody trusts the Chinese Communist Party (CPP). And although the US can manipulate the value of the dollar, its tools are limited compared to the CPP. Plus, the US is still the only country that's willing and able to prop up the world fin…
It's far from slim - it's very likely USD and EUR hegemony will be challenged. Western financial systems are ultimately and inherently discriminatory towards any non-western countries. Where for westerners using those systems enjoy reliability and predictability, the same systems implicitly (and recently, more explicitly) punish non-westerners with excessive compliance and scrutiny. So, basically, if you're from a no…
When you say non-western what do you mean in this context? From what you describe it just sounds like China, Russia and North Korea
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#239The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve. The behavior of the US Government has been very unusual lately, and the independence of the Federal Reserve is actively being challenged. So draw from that whatever conclusions you wish.
did you forget about all the money the fed printed during covid? fed independence is important, but literally irrelevant in the face of rampant money printing
We were in a lockdown, and Congress voted for multiple trillion dollar stimulus' financed by debt. Refusing to "print money" in those circumstances is just asking for a worse Great Depression.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#240Earlier quoted context omitted.
Bitcoin
People downvote this but Bitcoin has some very nice properties: - easy to verify/impossible to forge (as opposed to gold and paper currency) - fixed supply (as opposed to paper currency, oil, and even gold) - easy to transfer from one party to another (as opposed to gold, oil, and physical cash)
Suffers from no government having a stake in it. If it causes them problems, it can easily become illegal.