It’s not just that

This is a gradual decline. From 70% in the 90s to 60% today. Today there are more options like the Euro that didn’t exist in the 90s. People can argue over EU economic stability, but it’s there as reasonable option.

Currencies fundamentally relate to some trust.

I believe that the near-term de-dollarization isn't as much trust erosion as it is a tool to provide monetary penalty for behaving in unpredictable ways.

However it will provide incentive to move away from the dollar in the long-term, ie as Fareed Zakaria says "recent actions are accelerating the world to the multipolar future".

Unusual? That's one way of putting it. I think unpredictable, erratic and criminal paint a more a realistic picture. The fact we're threatening Greenland is absolutely insane.

If the goal of this administration is to destroy America, they're doing a fine job.

The Fed and largely US policy has absolutely no effect on the real reserve currency: https://en.wikipedia.org/wiki/Eurodollar

They are related but I think the lack of de-dollarization already shows there are other, more raw mechanics that are operative. Namely, liquidity and lack of alternatives.

The bro's in the whitehouse is using their mouthpieces to create a volatile market, thus gaming the system with pump & dumps. They are stealing from everyone in a sense.

> The behavior of the US Government has been very unusual lately, and the independence of the Federal Reserve is actively being challenged.

This is mostly due to the behavior of the country being unusual.

The US had grown at a healthy clip for a long time.

Due to the amount of boomers exiting the workforce, and withdrawing rather than adding to their savings - the US is going to be in a very different position for the next 10-20 years before things start to level out.

If something like AI doesn't save us with a pretty sizable productivity boost, we're in for uncharted territory.

> The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve.

I think this oversimplifies things. The dominance of the dollar emerged chiefly because most of the alternatives were worse, for a combination of military, political, and economic reasons.

There is a positive feedback loop at the core of it, because the US economy benefits greatly from being able to issue foreign debt in their own currency. But that doesn't matter: as long as the US faces little risk of getting invaded by any of its neighbors or defaulting on its obligations, everyone is happy.

What's been changing - and it started long before Trump - is that the US is also increasingly willing to use its control of USD (and thus the Western banking system) to pursue sometimes petty policy goals. This is giving many of our partners second thoughts, not because of the fundamentals of USD but because they imagine finding themselves at odds with the US policymakers at some point down the line.

> So draw from that whatever conclusions you wish.

Sure but replaced by what? The abysmal failure that the EUR is? Or a chinese currency?

What other options are there besides either a Chinese currency or the EUR?

Chinese. EUR.

Seen these twho choices, everybody understands why the USD isn't anywhere near losing its dominance status.

Our federal deficit interest rate is like 15% of government expenditures.

The dollar being the reserve currency which leads to demand for the dollar keeps the dollar from deflating.

But as people no longer demand the dollar because they don't want to support a imperialistic government what happens?

This is an article about multi-decade trends but you’re associating recent current events with the behavior. Consider reading the article.

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That is true, but it also goes well beyond that. Much of the "US Gov't behavior" is largely related to trashing and panicked frantic moves because the consequences of its prior and long tailed actions over decades has now not only started bearing rotten fruit, but a previous strategy of world domination through "globalism" has also turned against those who control the Wizard of the USA from behind the curtain.

On the face of it the Greenland situation makes no sense on a national security level regarding a non-existent, fabricated Chinese or Russian threat, nor related to the fantastical grift of the "Golden Dome" that is even more useless against what Russia has recently developed, than it was for things prior to about 3 years ago.

What we are looking at here (you can tell your children that you heard it here first) is a strategic move to essentially take Canada and all of the NA continent, and eventually all of the Americas. Yes, Canada, you are indeed in danger as well as Mexico. I don't see how it could be any other way in the face of current developments; remember Trumps USMCA, i.e., a de facto North American Union?

Biden stated that he wants the USA to have 300 million more "immigrants" before he let in about 15 million in 4 years. Annexing Canada is about 40M by the time we do it, Mexico would add another 150M plus however many people would flood into Mexico to become "Americans". That bring us to a total of around 550 million by the time the North American Union comes around. Perhaps if the UK joins, we will just call it Oceania already.

It does not address the fact that China has 1.4 billion and India another 1.4 billion, but it puts us in contention, especially as Europe has about 700 million by that time if/when the EU absorbs most of Europe.

That also doe not take into account the Wizard of the USA wanting to take over all of South America for positive control eventually… another ~480 million by that time, putting the American Union of Oceania at about 1 Billion, ±100M.

These are real tabletop calculations and how things are seen at the top and discussed amidst cocktails.

did you forget about all the money the fed printed during covid?

fed independence is important, but literally irrelevant in the face of rampant money printing

Why is the independence of the Federal Reserve sacrosanct? For one, they should have oversight and they should have accountability.

Not ever passing an audit of any kind. And the FED chairman spending $2.5B on renovations to an office complex. While misleading congress about the kinds of renovations.

There should be less 'independence', if it means zero accountability.