This video examines the potential effects of de-dollarization on the US dollar and its status as the global reserve currency.
- The US dollar has lost some of its purchasing power in the US, but its status as a global reserve currency remains strong.
- Fox News has predicted hyperinflation as a result of de-dollarization, but this is not the case.
- Global dollar-denominated debt has not decreased significantly, and the UK's inflation rate did not become hyperinflationary until 20 years after Bretton Woods.
- Loss of the US dollar's reserve currency status could lead to inflation throughout the rest of the decade.
What Is Hyperinflation?
Hyperinflation refers to a situation where there is an extremely rapid increase in the general price level of goods and services in a country.
In such a scenario, the value of the currency declines significantly in a very short period of time, leading to a situation where money loses its purchasing power rapidly.
In extreme cases, hyperinflation can lead to a complete breakdown of a country's economy and social order, as people can no longer afford basic necessities such as food and shelter.
Hyperinflation is often triggered by factors such as the excessive printing of money by a government, excessive government spending, and a lack of confidence in a country's economic system.
Why the US Dollar Will Not Experience Hyperinflation (Yet)
There are a couple of reasons why the United States dollar is unlikely to experience hyperinflation.
First, the US dollar is widely recognized as the global reserve currency, which affords it significant stability and value. Countries rely on the dollar whether they like it or not. This status enables the US to borrow money at lower interest rates and engage in international trade more easily.
Demand for dollars outside the country is greater than demand for dollars inside the country.
Whether you agree with the psychopaths in control or not, the stability and predictability of the US's political, military, and economic systems have maintained the US dollar's status as a reserve currency.
Second, compared to other economies of scale, the US economy is considered one of the world's most diverse and robust economies.
Furthermore, the country's political institutions, legal system, and transparency help to provide outside investors with confidence that their investment is secure and stable, thereby reducing the risk of hyperinflation.
Again, you have to compare the US system to other countries. The US is the cleanest dirty shirt in the global laundry basket.
In summary, the combination of the US Federal Reserve's monetary policy, the US dollar's status as a global reserve currency, and the stability of the economy and political system make it unlikely that the US dollar will experience hyperinflation anytime soon.