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    Warum sollte die Welt im Hintergrund dessen, was derzeit in der Welt passiert, in der Welt immer noch als Reservewährung angesehen werden?
    Geopolitik

    Warum sollte die Welt im Hintergrund dessen, was derzeit in der Welt passiert, in der Welt immer noch als Reservewährung angesehen werden?

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    1. Ashutoshp69 on

      This is all happening because USD has reached its limit. ‚Made in America‘ won’t work without devaluation of the dollar.

    2. Senior_Election5636 on

      Might be because its backed by the single most powerful economy on the face of the planet. And Secondly… backed by the largest and most projecting military power on the face of the planet.

      Lots of journalist fearmongering over loss of US hegemonic power recently

    3. BigHandsomeGent on

      This is important and under considered. While Trump only focuses on imports>exports, the more complete picture is that America has been able to consume more than it produces because the rest of the world sees US dollars as the safest asset they can hold; this made them willing to finance America’s over-consumption. This has been an enormous privilege that the American consumer has enjoyed.

      But now, America is at risk of finding out that when a country can’t be trusted, that country won’t be trusted. If that happens, “we want to cut spending” can turn into “we have no choice but to cut spending” very quickly.

    4. Electronic_Main_2254 on

      The „world“ doesn’t simply decide which currency will be a reserve currency. If that were the case, European countries could just declare the EUR as a global reserve, and South Africa could do the same with their ZAR.
      The reason the U.S. dollar USD holds this status is that, for now, the United States remains the world’s most dominant power so naturally, their currency continues to exert global influence.

      Last I checked, Wall Street was still the world’s most significant financial hub, Silicon Valley remained home to the largest tech giants, and the U.S. military was by far the most powerful, with the biggest budge (all of which operate on USD basis transactions obviously).

    6. Outrageous_Order_197 on

      Thats why they need a crypto reserve. For when the dollar collapses.

    7. phiwong on

      The world isn’t doing the US a „favor“ in using the USD as a reserve. The US is the largest economy and the economy that runs a large trade deficit. This deficit means other countries (broadly) export more than they import to the US. This means they accumulate USD assets – by definition. These are what allow the USD to be the reserve currency.

      All this talk about alternative reserve currency makes no sense. No other country is willing or able to run trade deficits as large as the US. China wants to be an export powerhouse and restricts capital flows – this alone means they have zero intention to be a USD alternative. The only other potential reserve currency is the Euro and they, on balance, still run a positive trade balance. For the EU to be a big reserve currency (bigger than they are), it will likely lead to further Euro appreciation, not exactly something they want when domestic economic growth is an issue.

      Bottom line, being a reserve currency requires a size, trade and economic policy that only the US can perform. Stop thinking of it as some kind of „choice“ – no other country/region is willing to run the negative trade balance. They’re looking out for themselves and aren’t doing the US a favor by continuing to use the USD as a reserve.

      But the US benefits from this as well, it sucks up capital from the world – pretty much leading to the largest capitalized stock market, huge investments in innovation etc. The fact that the US leads in technology is partly because it can fund new ventures with fairly cheap capital.

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