An interesting piece on what could bring down the USD:
- Whether the dollar retains its global role will depend not simply on the United States' relations with Russia, China, or the BRICS countries. Rather, it will hinge on whether the US brings its soaring debts under control, avoids another unproductive debt-ceiling showdown, and gets its economic and political act together more generally.
The writer is Barry Eichengreen, Professor of Economics and Political Science at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund.
Eichengreen does not see an imminent end to dollar dominance. However:
- history confirms that international currency status can be lost
and goes on to outline the demise of the UK pound sterling
- But whether that happens depends on the actions of the issuing country, not simply on geopolitical circumstances beyond its control.
- To a significant extent, the twentieth-century history of global currency status is a history of the British pound sterling, the leading global currency of the preceding century. Britain emerged from World War I economically and financially weakened. It had lost skilled manpower, sold off assets to finance the war effort, and now faced intense competition from other economies
Its an interesting read, link here: