Debunking Economics - the podcast Ditching the dollar
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Jul 2, 2025 The discussion centers on the declining dominance of the U.S. dollar, which has dropped from 71% to 58% in foreign reserves. It highlights the motivations behind de-dollarization, particularly China's shifting role. The complexities of currency dynamics and speculative trading are explored, revealing their impact on international relations and economic stability. A look at alternatives to the dollar and the potential rise of a tech-driven currency system adds depth to the conversation. Historical shifts in financial practices also provide insight into future possibilities.
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Dollar Losing Reserve Status
- The US dollar has declined about 10% this year, losing its stability as a reserve currency.
- Investors are moving away from US assets, seeing them as riskier due to currency fluctuations.
Dollar Privilege Hurts US Economy
- America's dollar privilege caused its currency overvaluation, weakening manufacturing and promoting trade deficits.
- This undermines long-term US economic power despite current benefits.
Speculation Drives Currency Volatility
- Financial speculation vastly exceeds actual trade transactions, amplifying currency volatility.
- This speculation impacts currency value more than real goods and services trade.