Honestly, despite our major concerns and the non-stop money printing of our government, we should ask ourselves — WHAT IS THE ALTERNATIVE TO THE US DOLLAR as the world’s dominant currency?
There is no clear alternative to the dollar that can match its liquidity, depth, and credibility. The Euro, the Japanese Yen, and the Renminbi all face their own challenges and limitations in becoming global currencies.
Of course, the US Dollar’s status is not guaranteed. Several factors have contributed to the erosion of the dollar’s share of global reserves, trade, and payments, such as the rise of other economies, the diversification of reserve portfolios, the development of digital currencies and cryptocurrencies, and the use of U.S. sanctions.
However, none of these factors alone are likely to dethrone the dollar in the near future.
The dollar still enjoys several advantages that make it attractive as a store of value, a medium of exchange, and a unit of account for both official and private actors. These include the size and strength of the U.S. economy, the stability and openness of its institutions and markets, the availability and safety of dollar-denominated assets, and the network effects of widespread dollar usage.
Therefore, while the dollar’s dominance may decline gradually over time, it is unlikely to be replaced by another single currency anytime soon.
Premise hinges on whether dollar and US economy is not a heavily manipulated political value...
No - and people saying it can have absolutely no idea how global trade works.
NO. No one, except governments in highly political deals, wants to hold Chinese Yuan.
Chinese banks are state-run, finances are completely opaque, and they operate as political arms of the CCP. Moreover, China has strict capital controls and foreign-exchange rules.
The same reasons you would not trust the US Government with your money (and you shouldn’t) are multiplied several times over with China.
Having said that though, many other options to holding US dollars will arise, as the US Fed.gov resembles China more and more.
“The US economy is self sufficient in fuel and power”
ONLY when Democrats aren’t running the government.
Yes, it will. The world’s leaders have been bought or threatened to make China the dominant power.
Quora is Chicom propaganda.
Their trolls have inundated it.
Doubt the Chinese themselves will accept much yuan for their exports.
The Yuan is a joke! The Chinese are facing a currency crisis orders of magnitude greater the USA.
If the Dollar is dropped as the Global Reserve Currency - there will be no successor. There just won’t be a Global Reserve Currency. Trade will be multilateral bartering or paid for with Gold.
Why would a 10-times bankrupt nation have the reserve currency? It won’t.
added note,
Chinese money goes by three different names.
Dollar is one name.
Piling on debt and buying from the rest of the world always works out well in the end. It's a sure sign of a thriving economy.
Some would want the same country that built too many poorly built skyscrapers and allowed Covid to escape from the lab to dominate world currency. Gee, what could go wrong?
EVs will need lots of expensive metal.
That metal can be used to back a currency.
“At 1:00 a.m. on Monday, March 6, President Roosevelt issued Proclamation 2039 ordering the suspension of all banking transactions, effective immediately. He had taken the oath of office only thirty-six hours earlier.
The terms of the presidential proclamation specified that “no such banking institution or branch shall pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever, of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoarding thereof; nor shall any such banking institution or branch pay out deposits, make loans or discounts, deal in foreign exchange, transfer credits from the United States to any place abroad, or transact any other banking business whatsoever.”
For an entire week, Americans would have no access to banks or banking services. They could not withdraw or transfer their money, nor could they make deposits.”
https://www.federalreservehistory.org/essays/bank-holiday-of-1933
“Reserve Banks were required to maintain gold reserves equal to 40 percent of the paper currency they issued, but foreign and domestic holders of US currency were rapidly losing faith in paper money and were redeeming dollars at an alarming rate.”
“At one point, Treasury officials seriously considered issuing large amounts of government scrip as an emergency substitute to take the place of cash. They even went so far as to print $10 million worth, but in the end Treasury Secretary William Woodin backed away from the plan, primarily out of concern that the public would not accept scrip at face value.”
“Instead he decided to ‘issue currency against the sound assets of the banks [as opposed to issuing currency against gold]. The Federal Reserve Act lets us print all we’ll need. And it won’t frighten the people. It won’t look like stage money. It’ll be money that looks like real money’”
How much does that drug sell for?
About ten times what the last generation cost.
Do customers object?
No, it’s nearly free for them. Insurance companies have to pay under US federal and state law.
Nice racket you’ve got. Yes, indeed, our stock is sky-high.