Not for a long time if ever.
Reserve currency status is based upon trust. And we are by far still the highest floating turd of a currency.
Yes we are diminishing that trust, but we have a long way to fall to match the chicoms.
I could see that.I think we'll increasingly see a bifurcation, whereby the US still hangs onto its use as a value store, while China's yuan continues to become increasingly dominants for buying & selling transactions (since China increasingly makes more of the things people buy & sell.). This will put the US under increasing pressure over tolerance to inflation.
Indeed.As of the time of this writing, the USD constitutes 60% of world reserve holdings (which has remained steady for the past decade or so), with the Euro a distant second at 20% and 40% of all global debt issued in USD.
The Yuan by contrast stands at a pathetic 2.5%, and given its recent geopolitical and domestic tensions underscoring its at best tentative rule of law, as well as substantial economic, debt and domestic issues, I can't imagine that share exploding in growth anytime soon.
Sometimes when I'm confused, I dig a little deeper into the subject. For instance, where does the country with the reserve currency rest in that top 10 list? If the United States had the same GDP as, say India, or another country on that list, would people in general in the United States be poorer or richer than they are today? And by how much? (I.e. how big is the difference in GDP between the United States and these other countries... 5%? 10%? 15%?) Surely even a 15% change would be noticed, but something as small as 3 or 4 probably wouldn't make people "poor."I’m not an economist, but I find this statement confusing. Of the top ten countries by GDP, nine of them don’t have money that’s used as the global currency. Granted, India is one of these countries, but their issue is colossal wealth disparity rather than national poverty.
It's the debtor nation that starts so called "trade wars" because history proves it's the targeted creditor nation that loses 'em. The Boyz in Beijing knew this which is why they were hopping mad about it. Biden hasn't changed a thing of it besides.When I say poorhouse, I'm talking about the US being crushed by the debt-servicing costs of its enormous debt. The United States is the world's biggest debtor nation.