Can the U.S. Dollar Endure as the Dominant Reserve Currency?

Since the global financial crisis of 2007-8, the future role of the US dollar as the main reserve currency has been challenged from time to time by researchers and the general media. Government bonds in the US increased to a record level (103% of the annual GDP in 2012), and in 2011 the ratings were downgraded. Since 2008, the massive quantitative easing of the Fed has actually increased the supply of funds according to macroeconomic theory. This will lead to depreciation of the exchange rate against other currencies.

Historically, the role of the dollar in the world's reserve currency has backed the dominant position of the United States. The depreciation of the US dollar as the world's reserve currency is one of the most obvious signs of the decline in the global economic situation in the United States, equivalent to the annihilation of the British pound as the world's currency, and in the post world the Second World I will help the Taishi Empire to end the great war. In other words, in the current currency system, the US can pay the price of goods and services in printed dollars. If other countries print large amounts to buy imported products, their monetary value will collapse in the foreign exchange market. As the dollar's reserve currency position has created infinite demand for the dollar, the United States strengthens its military strength and supports the press to purchase foreign goods.

It is unlikely that the dollar will stay in major foreign currency reserve currencies over a long period of time and switching to another reserve currency could potentially seriously disrupt the global economic system. The imminent crisis in the economy may be an opportunity for fundamental redesign of our currency and the economic system, not from one dominant reserve currency to another. Many analysts predict that the dollar will lose this condition in the next few years (more info)

In the past 600 years, there were six different global reserve currencies dominated by the world's superpowers. The latest dollar accounts for over 80 years of world currency. The shocking fact is that the world's reserve currency collapsed every 80 to 90 years during the past six centuries! What does this mean for the advantage of the US and the US dollar? Based on recent evidence and long-term historical trends, experts are predicting that the dollar is about to collapse! What is more worrying about you? Many Americans are still not savings and retiring can save depreciation of the dollar.

For those unknown, the world economy is highly dependent on the dollar. This is a summary of the United States' major position in global economic and political issues. The dollar is the reserve currency of the world economy. Every major financial industry in the world is developing business in the US market. This is why the turmoil in the financial markets in the United States brings shock waves to the world. For example, due to the global financial crisis in 2008, countries far from the United States faced wide economic difficulties in Iceland.