De-dollarization: Is the US dollar losing its dominance? (2025) • Hacker News Board

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

#81

Post by notahacker » Tue, Jan 20, 2026, 4:42 PM UTC

StephenSmith wrote: post #9

If 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.

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

#82

Post by shawabawa3 » Tue, Jan 20, 2026, 4:43 PM UTC

calvinmorrison wrote: post #76

munk-a wrote: post #66

Earlier 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…

Maybe unsaid but the idea that Congress can create an organization that is not executed by the executive is the issue

Isn't that the entire point of congress? Otherwise why not just have an all powerful president and do away with the houses

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

#83

Post by softwaredoug » Tue, Jan 20, 2026, 4:43 PM UTC

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.

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.

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

#84

Post by mothballed » Tue, Jan 20, 2026, 4:43 PM UTC

munk-a wrote: post #66

mkoubaa wrote: post #25

Earlier quoted context omitted.

[flagged]

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).

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

#85

Post by weirdmantis69 » Tue, Jan 20, 2026, 4:44 PM UTC

If Something Cannot Go on Forever, It Will Stop

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

#86

Post by BowBun » Tue, Jan 20, 2026, 4:45 PM UTC

Just last week, I was accused on HN of "not knowing what I'm talking about" when sharing data showing, and my interpretation of, a declining US dollar globally.

It is so obvious in the context of globalization: countries seeking power will chip away at fiscal dominance of others with a thousand cuts. Why wouldn't they? Especially after years of getting bullied.

So many people are so dependent on this reality that I think it's going to happen long before any Americans accept it has happened.

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

#87

Post by minkeymaniac » Tue, Jan 20, 2026, 4:45 PM UTC

quadyeast wrote: post #73

uhm, they need to proof thier article "This increased demand has in turn partly driven the current bull market in gold, with prices forecast to climb toward $4,000/oz by mid-2026."

Article is from July 2025, Gold was 3362 at that time

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

#88

Post by maerF0x0 » Tue, Jan 20, 2026, 4:45 PM UTC

China 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/2025/09/10/china-is-ditching... ( https://archive.is/aNRmm )

3 - https://www.amazon.com/dp/B006JAM3UU/ "Currency Wars" by James Rickards (2011)

[4] - https://www.macrotrends.net/1437/sp500-to-gold-ratio-chart

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

#89

Post by FpUser » Tue, Jan 20, 2026, 4:45 PM UTC

chroma205 wrote: post #79

torlok wrote: post #44

Earlier quoted context omitted.

[flagged]

> Are you a financial analyst by any chance, because the "here's a few facts, interpret how that's going to impact the market yourself" is very on-brand. What do you want him to say? 1. De-dollarization is all Trump’s fault Or 2. The world is reacting to Trump putting America first

The world is reacting to reserve currency being used as a tool to conduct politics and twist arms. Started before Trump. He is just increasing "efficiency"

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

#90

Post by corimaith » Tue, Jan 20, 2026, 4:46 PM UTC

FpUser wrote: post #50

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.

>This looks to be slowly changing for various reasons.

Well, not really, because obviously that deprecation via buying government treasuries is balanced by the appreciation in the other currencies. But if everybody (large enough to matter) dosen't want their currency to appreciate, if somebody buys Japanese bonds for example to weaken their own currency, then Japan will buy somebody else's treasuries to offset the increase in Yen, and if we go to the long chain of musical chairs of people offsetting each other's behaviours, it just leads back to the USA as the only ones both large enough and willing to take in those capital inflows.

That's not a interpretation mind you, that's a description of what central banks are doing right now. If that has to change, you need somebody willing to take the mantle of the absorber of global deficits, and nobody wants to do that.