As every connoisseur of the more excitable bits of the financial blogosphere can tell you, the dollar is on an unstoppable trajectory to disaster.
One recent post argued that the US has, like the Roman empire before it, weakened itself relative to other world powers. The dollar’s central role in the global financial system is in decline as “the people in charge never seem to miss an opportunity to dismantle capitalism brick by brick”.
That’s the argument. We’ve all heard it for more than two decades and we’ll hear it again, now with the added spice of dark geopolitical trends; the move in 2022 to punish Russia for its full-scale invasion of Ukraine by freezing its dollar reserves held abroad means lots of countries might now look to stash their rainy day funds in other currencies.