There Are No Alternatives to the US Dollar
One can go through all the currencies in the world. But at the end, the dollar is the only currency that offers investors safe and liquid sovereign bonds.
One can go through all the currencies in the world. But at the end, the dollar is the only currency that offers investors safe and liquid sovereign bonds as well as liquid bond, equity, and real estate markets.
As long as the American economy is strong and American companies thrive, there is no currency that can seriously challenge the U.S. dollar. The reality is that a strong currency leads to lower interest rates. A weak currency leads to higher rates. The American economy works with credit so it must have low interest rates to properly function.
There cannot be a de-dollarization since there is no substitute for the U.S. consumer. Neither the Chinese nor the European consumers are close to overtaking the American ones. On the contrary, the demographic trends in these regions point to weaker future consumer spending.