For some reason, I see more people posting about the imminent crash of the dollar than I see in line at the bank cashing in all their dollars to buy yuan and rubles.
RE: The author is severely suffering a bad case of Normalcy Bias. He basically says that, because we’ve been so big and so good, the good times will never end.
I have to sadly agree with you here.
The U.S. dollar inspires less and less confidence. The fault lies with the mismanagement of the country. The American public debt is exploding, and many countries don’t want to pay forever for the standard of living of Americans.
In reality, the U.S. dollar offers an exorbitant privilege to Americans. It allows them to live on the backs of the rest of the world.
China or Russia have long been preparing for the fall of the US dollar by buying massive amounts of gold for years. China has just launched the e-RMB in order to benefit from the first-mover advantage to break the monopoly of the US dollar.
The crux of the war for Americans now is to make sure that oil remains priced in US dollars.
But, but, but, Several initiatives from China and Russia have emerged in recent years to ensure that OPEC countries no longer systematically favor the U.S. dollar.
For the time being, Saudi Arabia continues to support the U.S. dollar. Other OPEC countries are following suit, but Qatar has begun to give more room to the Chinese yuan.
This explains why Qatar has suffered such a boycott from surrounding countries for example.
Several initiatives from China and Russia have emerged in recent years to ensure that OPEC countries no longer systematically favor the U.S. dollar.
These are the major headwinds the US Dollar will be facing and the non-stop spending like drunken sailors by our government will simply ADD to those headwinds.
The main question is this — WHAT ARE THE BETTER ALTERNATIVES to the US Dollar?