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De-dollarization: Is the US dollar losing its dominance? (2025)

jpmorgan.com

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Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#41

Post by tencentshill »

mkoubaa wrote: post #25
snovymgodym wrote: post #3

The 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.

[flagged]

Their stability has worked to benefit a lot of rich and powerful people, so I would question the motives of this sect of billionaires who are trying to destabilize it. They must believe they can extract something from the ashes.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#42

Post by throwaway5752 »

mkoubaa wrote: post #25
snovymgodym wrote: post #3

The 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.

[flagged]

Holders of US debt have no obligation to give a shit about the statutory background of the Fed, and to just make decisions about who is the best fiduciary of their currency.

If holders of US debt goes away, we have immediate inflation to the point where our currency hits trade equilibriums such that we can service our debt. All of your savings are worthless.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#44

Post by torlok »

snovymgodym wrote: post #3

The 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.

[flagged]

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#45

Post by stackghost »

mkoubaa wrote: post #25
snovymgodym wrote: post #3

The 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.

[flagged]

>The federal reserve has no constitutional right to exist or be independent.

Irrelevant.

Actions have consequences, and the natural consequence of the actions of the US administration is that corporations and states that value stability are looking elsewhere than the US Dollar.

Whether or not the Fed has a constitutional right to independence is irrelevant to this situation. If Americans want to cheer while Trump flushes nearly a century of soft power down the toilet that's their prerogative, but the trend of de-dollarization has already begun and it's unlikely to be reversed.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#47

Post by softwaredoug »

mkoubaa wrote: post #25
snovymgodym wrote: post #3

The 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.

[flagged]

While maybe true, the history of direct democratic control of monetary policy is not a pretty one.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#49

Post by mitthrowaway2 »

mkoubaa wrote: post #25
snovymgodym wrote: post #3

The 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.

[flagged]

That's true, but the US dollar also doesn't have a constitutional right to be the international reserve currency.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#50

Post by FpUser »

corimaith wrote: post #11

The 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.

>"The export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade"

I have about zero clue how finances really work but it looks to me as the statement is only true if the dollar is the predominant currency for international trade. This looks to be slowly changing for various reasons.

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