Unless the US losses a major war either economical or physical they are hard to upend because of globalization. Everything is very dependent on the US dollar and switching it will take a lot of persuading. Like losing a world war type persuading.
I think that the “de-dollarization” can happen gradually, with the dollar slowly becoming a smaller portion of a bucket of currencies used for international transactions. Even countries that want to get out from under the dollar tax probably want this to be a slow transition.
That said, I have no idea what the next few years will look like economically. Probably income inequality will greatly expand and I wouldn’t be surprised if new national alliances occur.
Comments
Unless the US losses a major war either economical or physical they are hard to upend because of globalization. Everything is very dependent on the US dollar and switching it will take a lot of persuading. Like losing a world war type persuading.
I think that the “de-dollarization” can happen gradually, with the dollar slowly becoming a smaller portion of a bucket of currencies used for international transactions. Even countries that want to get out from under the dollar tax probably want this to be a slow transition.
That said, I have no idea what the next few years will look like economically. Probably income inequality will greatly expand and I wouldn’t be surprised if new national alliances occur.
With covid-19, the U.S. Congress is really hammering the Cosmic Credit Card.
The deficit and the debt seem to be Really Big Numbers, existing in a scope outside of economic reality.
One has the impression that this is not an economic perpetual motion machine.
Maybe covid-19 could sink the USD and usher in a new economic phase.
But seems unlikely, and there further seems zero political will to do anything more sane fiscally.