Thread

1. Arubis · 1789753289 · focus · HN ↗

   Dedollarizing the world economy has more net losers than the US (though that's the obvious one).

   It's not without its benefits -- over the last couple decade, the US has found ways to weaponize access to USD, so if you're not a fan of having a country other than your own able to effectively regulate or sanction you and your business, there's some niceties here.

   Being able to trade and invest in a stable, highly liquid, easily converted, low risk currency was a net win for most of the world for about half a century. There isn't an obvious replacement, so we'll just see more friction.

   1. nostrademons · 1789753559 · focus · HN ↗

      It's kind of a prelude to a Thucydides Trap.

      The problem with replacing the world reserve currency with something else is that nobody can agree on what that something else should be. Expect to see a lot of jockeying for power as people realize the U.S. isn't the world hegemon anymore. Jockeying, on a state level, usually means war.

      1. mohamedkoubaa · 1789757369 · focus · HN ↗

         The question might be less about what replaced the world reserve currency and more about how the global economy might function or not function without a world reserve currency

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