“HOWEVER, the underlying basis of this DOLLAR POWER is US control of Mideast oil.”
The strength of any fiat currency comes down to confidence in the government that issues that currency.
The greater the confidence in that government, the stronger the currency and debt, and lower the interest rate on that debt.
Conversely, lack of confidence leads to a weak currency, and higher interest rate on its debt.
Once confidence is gone, hyperinflation can emerge.
I certainly agree that that the confidence can be supported by a wide range of factors.
Best
True, the strength of a currency is ultimately about confidence.
But part of that is assurance of its future value.
In the case of US dollars, that is buttressed by the fact that there are a few things that ONLY US DOLLARS CAN BUY, most notably:
1) U.S. Bonds (The great bond market with its high interest rates as compared with risk)
2) OPEC oil
3) Payment of US Taxes
Yep, even the taxes have a role in structuring the value of our currency ... as long as the economy and our market are worth doing business in!