I usually read piaeces like this as bullish for the US .. the truth is .. neither the author nor anyone else can really call how this plays out .. but what is clear (and f***g obvious) is that there’s still no country as economically dynamic or creative as the US .. and if not the dollar .. then what realistically takes its place ... the euro, RMB, rupee? None come close yet in terms of depth, liquidity, or trust ... these type of de dollarization makes for an interesting news cycle and discussion, but it’s a super long road from theory to reality ..
De-dollarization: Is the US dollar losing its dominance? (2025)
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Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#252Is World in immediate trouble? I see three posts discussing collapse of US currency and market on homepage, and this site actively avoids anything political.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#253Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#254Earlier quoted context omitted.
While maybe true, the history of direct democratic control of monetary policy is not a pretty one.
Neither is the history of control of the money supply by private financial institutions.
the fed has been doing a pretty good job for the last 100+ years. I'm not a fan of the 'we'll let's just try it this other way, we haven't in awhile' argumentation.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#255If 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.
The flip side is if you weaken the dollar by appearing unstable and displaying hostility to your main trade partners, you get the drawbacks of the weaker currency (reduced purchasing power) without commensurate improvement in the attractiveness of goods to other countries. Some devaluations are more strategic than others.
But the broligarchs don't need purchasing power. All their wealth is in assets, leveraged many times over. Currency collapse is the best that can happen to them.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#256China 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 lit…
Does using the Renminbi require investing in securities?
It's a very different thing to trust that China will maintain the value of its currency, than to trust that investment in Chinese companies will remain liquid and not be arbitrarily cut to a price of zero.
I'm not saying you're wrong, but I also don't fully understand the need to have grander access to capital markets. Perhaps access to the equivalent of US Treasury auctions?
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#257The 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
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>> I'm sorry, what treachery was committed? The imposition of import taxes is not treachery.
It is an egregious violation of the Constitution, which specifically says that only Congress can impose taxes.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#258The US has had an economic wind at its back for a long time, but there’s perfect storm of debt, trade, inflation and de-dollarization brewing.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#259Earlier quoted context omitted.
Gold is not "real money", come on.
A goat or a sheep cost roughly the same in gold today as it cost 2000 years ago during the Roman Empire. Gold is the only “real money” in the sense that it is the only stable measure of the value of basic needs over centuries. https://chatgpt.com/share/696fb3e8-91d4-800a-9b2b-32eacdadeb...
Ahh, yes, gold and the speed of light in a vacuum - the only real constants in the real universe.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#260The 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
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This is about way more than a few tariffs. Think Venezuela, think madman jizzing over the idea of invading greenland, or just throwing tantrums on an international scale.