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

Post by maerF0x0 » Tue, Jan 20, 2026, 6:29 PM UTC

mythical_39 wrote: post #410

ericmay wrote: post #109

Earlier quoted context omitted.

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…

not even P/E ratios resetting back to historic norms? Or have we finally entered a new age where highly elevated P/E are a permanent feature of markets?

Post by rdtsc » Tue, Jan 20, 2026, 6:31 PM UTC

pavlov wrote: post #217

lostlogin wrote: post #185

Earlier quoted context omitted.

> Additionally, we've now seen the EU survive the departure of a major economic power (the UK). I don’t really understand the impact of Brexit on the euro, as Britain wasn’t on it. But clearly they were a key part of the EU. It’ll be interesting to see which side regrets the move more.

The answer is already clear: Britain regrets the move more. In June 2025, 56% of people in Great Britain thought it was the wrong decision: https://www.statista.com/statistics/987347/brexit-opinion-po... It's hard to imagine this number would be going down after recent events like USA suddenly threatening arbitrary new tariffs on the UK.

Post by [deleted] » Tue, Jan 20, 2026, 6:32 PM UTC

JumpCrisscross wrote: post #289

chrisco255 wrote: post #209

Earlier quoted context omitted.

Nobody is cheering for inflation to get worse, they are celebrating it being held down to 2.7% after higher inflation a few years ago. The U.S. is a net exporter of oil and food and self-sufficent for majority of its mineral needs as well. There is no need for U.S. to crash its currency to incentivize domestic production, it can just impose tariffs on imports to do so.

> it can just impose tariffs on imports to do so This is how you grow a sclerotic, internationally-uncompetitive domestic industry. See: shipbuilding. Where tariffs work is as a nursery policy. Give firms a safe haven to grow in. Then let competition hone them. South Korea has pioneered this playbook; China copied it. We were sort of doing it, but the current administration blew up our nascent new energy industry.

Post by [deleted] » Tue, Jan 20, 2026, 6:33 PM UTC

Post by Barrin92 » Tue, Jan 20, 2026, 6:34 PM UTC

the_real_cher wrote: post #246

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.

Our federal deficit interest rate is like 15% of government expenditures. The dollar being the reserve currency which leads to demand for the dollar keeps the dollar from deflating. But as people no longer demand the dollar because they don't want to support a imperialistic government what happens?