Market Watch: U.S. Dollar - and Its No. 1 Status - Could Become a Casualty of Economic War
Article by Satyajit Das in Market Watch
The dollar’s dominance benefits the U.S. in many ways. It allows the U.S. to fund large twin deficits
But now the U.S. dollar faces two main threats. First, America’s persistent profligate fiscal and monetary policy make the long-term purchasing power of the U.S. dollar uncertain. Against gold, for example, the dollar’s purchasing power has fallen by 99% since 1972.
Second, the dollar has become America’s weapon of choice to further political objectives and preserve its global position. Weaponization allows extra-territorial application of U.S. policies and laws using the dollar ......