All of this s true and worth saying, but the policies that would lead to the loss of dollar dominance are themseves much worse than the loss.
"Don't drive like a maniac and total your car, it will _ruin_ the paint job!"
And BTW, the actual benefit to the US from "dollar dominance" is the dminace of US firms in managing the world's interntional transactions and investments, not the discount at whihc the USG can borrow.
There´s certaily a wide range of benefits that interact with positive feedback, making the total bigger than its parts. That´s what makes the policies that "break the gravy train" so destructive
Moving away from dollar assets (Gov debt) is a slow persistent process. With that rates will gradually rise and the process will gradually accelerate.because risks will be rising
All of this s true and worth saying, but the policies that would lead to the loss of dollar dominance are themseves much worse than the loss.
"Don't drive like a maniac and total your car, it will _ruin_ the paint job!"
And BTW, the actual benefit to the US from "dollar dominance" is the dminace of US firms in managing the world's interntional transactions and investments, not the discount at whihc the USG can borrow.
https://thomaslhutcheson.substack.com/p/the-dollar-privilege-or-burden
There´s certaily a wide range of benefits that interact with positive feedback, making the total bigger than its parts. That´s what makes the policies that "break the gravy train" so destructive
For Dollar to be replaced, wouldn't the vast stock of dollar denominated debt worldwide first need to be repaid?
Which for now is only growing
Moving away from dollar assets (Gov debt) is a slow persistent process. With that rates will gradually rise and the process will gradually accelerate.because risks will be rising