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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe sun is setting on dollar supremacy, and with it, American power
That this position what Giscard d'Estaing referred to as America's "exorbitant privilege" could so casually be put at risk by politicians on Capitol Hill is an extraordinary spectacle that may be indicative of a great power already seriously on the wane.
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Dollar hegemony has long been a destabilising force at the centre of the international monetary system; it's a major part of the sharp build-up in global current account imbalances and cross border capital flows that have been at the heart of so many of the problems in the world economy. The unprecedented accumulation of dollar foreign exchange reserves has in turn caused new challenges for the US, making it more difficult to maintain fiscal and financial stability within its own borders.
Policies that may or may not be good for the US are in all probability bad for everyone else. Loose monetary policy in the US since the crisis began has induced unwanted demand and asset bubbles elsewhere in the world.
Serious alternatives to the dollar, such as a global reserve currency, are still a long way off, but the latest shenanigans on Capitol Hill have given the search for them renewed and added momentum. The US is wrecklessly throwing away its future.
http://www.telegraph.co.uk/finance/comment/jeremy-warner/10378666/The-sun-is-setting-on-dollar-supremacy-and-with-it-American-power.html
NYC_SKP
(68,644 posts)Response to FarCenter (Original post)
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lonestarnot
(77,097 posts)davidpdx
(22,000 posts)I have no doubt it will eventually, but as the author said it is a long ways off.
dixiegrrrrl
(60,010 posts)The "currency war" is alive and well, and a huge part of why we are so embattled in the Middle east.
Worth doing a Goolge and a bit of reading up on the issue...
davidpdx
(22,000 posts)(actually most of my money is invested in our house). The Chinese Yuan and the Japanese Yen will end up being the dominate currencies in Asia. I'll have to look up more next month after I finish my comps class.
treestar
(82,383 posts)Why would that not be the case with any other global hegemony?
Say what you will, it's better it be the US than any other country. The only preferable hegemons would be - Canada or Australia, and they'd need our help.
Fumesucker
(45,851 posts)Policies good for multinational corporations are bad for everyone not of the 1%, 99% of the US included.
BluegrassStateBlues
(881 posts)What a shame that we have a system that can be penetrated by people that don't understand the importance of remaining at the top.