“… the dollar’s share of official foreign-exchange reserves has declined from a little over 70% in 2000 to a little less than 60% today, according to the BIS. That downtrend could gather momentum in the years ahead, especially with the U.S. currently leading the charge in de-globalization and decoupling. With America’s share of reserves well in excess of its share in world GDP and trade, such a correction might well be inevitable in an increasingly fragmented, multi-polar world.”
My opinion: the author does not mention the supply chain. Or “purchase orders” upon which the supply chain depends. Or the incentive for other countries to free themselves from the impacts of tariffs.
Pause for a moment and ask yourself, do you think China, Russia, Iran, Saudi Arabia, the EU, etc aren’t avoiding VAT and US economic sanctions using blockchain backed “purchase orders”?
Is it just a coincidence ETH, the dominant player in both “proof of work” and “proof of stake” crypto blockchain smart contracts, was created and backed by Russia, the largest energy supplier to the EU?
Forget politics and think like a Neanderthal for a minute. Maslow’s hierarchy.
Life depends on mundane stuff like food, water and energy. All of these involve complicated supply chains that can be manipulated in a trade war.
If we, the United States of America, were being controlled by a foreign currency, would we tolerate it? No.
Russia didn’t start this break towards independence from US economic hegemony, Europe did with the Euro. But they kept Central Banks’ central control so it hasn’t provided freedom.
Meanwhile China was like “heck-with-it, just pin it to the dollar and choke their supply chain.. Oh and invent BTC, let Binance flourish, etc etc…
The American-centric worldview is just that, a “world view” which by definition has built in bias and distorted perceptions. It can be blinding.
For the sake of future generations in every country, we must consider their future, not just ours. Loss of monetary influence would be a world changing event. Nobody knows how this will shake out.
It is hard for me to shake off the words spoken to me recently while on a walk. To paraphrase their words:
“Dude just accept it. We surrendered in 2016 to a history of racism and sexism. 2020 is the year America finally is starting to see what happens when you surrender to some imaginary and some real dragons. But is it a bad thing to let other countries deal with their own problems? Who made us world police?”
I don’t have an answer. It’s like the first time a child sees a horrific car accident. You can’t “un-see” it.