Once the world realizes the USD has no real value, Our quality of life will plummet, as will our buying power.
I see it as inevitable. I just want to get braces for my kids’ mouth before it happens, because it won’t ever happen afterwards.
I don’t doubt that we are on that path. But I remember all the talk about the EUR replacing the USD, the CNY doing the same because of how big China will become.....etc.
Reality is that collective currencies like the EUR can never supplant the USD because you are getting problems of 20+ countries. CNY is sterilized to the point that if the Chinese let it float freely they would undermine their own economy as well as force a capital flight so it can never be so available as to become relevant.
The Russian economy is so backward and corrupt that to risk accepting RUB when the Central Bank has a history of simply shutting down FX payments at will is a recipe for disaster.
It’s all just a consensual hallucination.
All currency in the world today is faith based (confidence). The reality is that the USD is the most consistent, widely accepted currency of the world’s largest economy. Some day there may well be another currency that is universally accepted for international trade for commodities. But it is a ways off yet. If a couple of nations decide to do one off deals and create the bank and capital to back their deals, good for them. With the volatility and risks associated with those currencies, a big swing could cost a party chitloads of money as the value dips or jumps.
“Once the world realizes the USD has no real value, Our quality of life will plummet, as will our buying power.”
Given our debt, it MUST end this way. Very sad for this once-great country, but we DEMANDED it by wanting low taxes and high spending at the same time...and we got it.