Comment by mannyv | Hacker News Reader

Comment by mannyv | Hacker News Reader

De-dollarization is one of those things economists love to talk about.

The chance of the dollar losing its reserve currency status is slim-to-none. No matter how bizarre the US is, nobody trusts the Chinese Communist Party (CPP). And although the US can manipulate the value of the dollar, its tools are limited compared to the CPP.

Plus, the US is still the only country that's willing and able to prop up the world financial system with no immediate benefit (see Argentina). The US can and will intervene when necessary. And as history has shown, the Euro Zone can't really make decisions quickly and effectively. How many times has the Euro been on the verge of collapse in the last 20 years? And is proximity to Russia is, well, risky.

In any case there is no currency big enough to take the dollar's spot at this point in time. Trillions of dollars flow through the financial system every day.

It's far from slim - it's very likely USD and EUR hegemony will be challenged. Western financial systems are ultimately and inherently discriminatory towards any non-western countries. Where for westerners using those systems enjoy reliability and predictability, the same systems implicitly (and recently, more explicitly) punish non-westerners with excessive compliance and scrutiny. So, basically, if you're from a non-western country, good luck not having your money confiscated or fronzen at some point - and this applies both on state-level and individual level. Of course sensible countries will seek alternatives and will create ways to bypass this elitist bullshit. The whole thing is literally nothing else but inertia at this point and over time both USD and EUR systems are destined to become merely regional.

When you say non-western what do you mean in this context? From what you describe it just sounds like China, Russia and North Korea

I mean literally any country outside of Europe, North america, Australia, New Zealand and maybe some non-western exceptions like Singapore.

I don't think that's exactly fair; there are plenty of other places that do not suit these criteria that get along fine with the dollar. it is on an exclusion basis not an inclusion basis

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