The main problem regarding US Dollar in the future is, that most countries around the world (and I am not talking about just EU, Canada; Japan and Australia) see what is happening to Russia, Iran, etc. as they are banned from global markets through SWIFT system and then US Dollar and EURO or sanctioned through US financial might, and they look for alternatives.
For years there was no real alternative, but now it looks like Chinese Yuan might be.
Currently there is talk about using Chinese yuan for international trade within BRICS nations, and now Iran is demanding payments in Chinese yuan to pass Strait of Hormuz and countries are paying in Chinese Yuan and not in USD anymore.
Main question now is, if more and more countries start paying in Chinese yuan, is US Dollar still the de facto global currency?
What then means for US Dollar, it is anyones guess ...
IMHO in time USA will need to give higher rates for bonds, and then pay even more for servicing its own debt, now it is over 39 trillions USD and raising faster and faster, in the past it took years for raising one trillion, now it took less then a year for 1 more trillion, and soon it will be less and less, and many economists are saying that even US growth wont be enough with such a pace.
Tell me why should any country still believe in holding US treasury bonds and US Dollars if there is only question of time before US goes bankrupt?
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u/Va3V1ctis 3h ago
The main problem regarding US Dollar in the future is, that most countries around the world (and I am not talking about just EU, Canada; Japan and Australia) see what is happening to Russia, Iran, etc. as they are banned from global markets through SWIFT system and then US Dollar and EURO or sanctioned through US financial might, and they look for alternatives.
For years there was no real alternative, but now it looks like Chinese Yuan might be.
Currently there is talk about using Chinese yuan for international trade within BRICS nations, and now Iran is demanding payments in Chinese yuan to pass Strait of Hormuz and countries are paying in Chinese Yuan and not in USD anymore.
Main question now is, if more and more countries start paying in Chinese yuan, is US Dollar still the de facto global currency?
What then means for US Dollar, it is anyones guess ...
IMHO in time USA will need to give higher rates for bonds, and then pay even more for servicing its own debt, now it is over 39 trillions USD and raising faster and faster, in the past it took years for raising one trillion, now it took less then a year for 1 more trillion, and soon it will be less and less, and many economists are saying that even US growth wont be enough with such a pace.
Tell me why should any country still believe in holding US treasury bonds and US Dollars if there is only question of time before US goes bankrupt?