Modern Economic Nonsense — The dollar is dying slowly

xuanling11
Coinmonks
Published in
4 min readJun 18, 2022

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The greenback is no longer the world’s reserve currency ⚰️, and this is becoming evident by the day. Emerging economies are moving toward reducing their exposure to the dollar — some are even willing to pay a heavy price. The nations that make up the majority of the world economy have grown tired of being at the mercy of the U.S., which has used its position as a global monetary superpower to siphon off wealth from other nations in exchange for cheap credit and token assets such as stocks in American companies. It has been over 200 years since England abandoned the gold standard and introduced paper money as a primary means of financial transaction. Since then, there have been numerous attempts to revert back to gold-based money or some variation thereof; however, none has succeeded so far. Today we live in a digital world where information is stored in bytes instead of gold bars, tokens are more relevant than coins, and digital payment systems like PayPal have replaced leather purses filled with gold coins as an instrument to pay for goods and services. This raises another question: Will fiat currencies survive another 200 years? Hint: probably not.

The end of an era?

The first thing that comes to mind when discussing the end of the era of fiat currency is the end of the era of the U.S. dollar as the world’s primary reserve currency. The dollar has reigned supreme since the 1940s when the U.S. abandoned the gold standard and introduced the Bretton Woods system. The dollar has been on a downward trajectory ever since the financial crisis exploded in 2007–2008. The crisis has been the catalyst that has accelerated the dollar’s demise. The crisis has also exposed the flaws of the financial system. The response to the crisis, which involved flooding the economy with cheap money through low-interest-rate policies, has created even more instabilities in the system with multiple levels of bubble within the financial system everywhere. The dollar’s fall has been the most spectacular, and it has been hastened by the U.S. administration’s imposition of various trade tariffs and sanctions on other countries. In 2022, with many chaotic world of war, health crises, money crises, debts crises, food crises, climate crises, … you can add more in the coming years, can the dollar be trustable anymore to weather…

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