The Indispensable Dollar Standard Will Not Be Displaced

Posted June 14, 2023

We frequently hear that the US Dollar will soon lose its status as the world’s leading international reserve currency and that The Dollar Standard will soon come to an end.

For instance, many commentators warn that if China buys oil from Russia and pays for it with Yuan, instead of Dollars, or if Russia buys soybeans from Brazil and pays in Rubles, the game will be up for the Dollar.

I believe views like these are based on a fundamental misunderstanding of what The Dollar Standard is.

The correct understanding of the nature of this system makes it very clear that The Dollar Standard will continue to serve as THE international monetary system far into the future.

The new Macro Watch video uses Vietnam’s “economic miracle” to illustrate The Dollar Standard’s unique power to create phenomenally rapid economic growth and to explain why the Dollar will remain the main international Reserve Currency.

Over the last two decades, Vietnam has been enriched and transformed by an extraordinary economic boom thanks to its integration into the global economy within the framework of The Dollar Standard.

Once the mechanics of The Dollar Standard are understood, along with the benefits that it conveys, it becomes very difficult to believe that this international monetary system will be (or even could be) replaced by any other within the foreseeable future.

Moreover, the enormous advantages The Dollar Standard bestows on the United States also come into focus.

The Dollar Standard is one of the United States greatest strengths and a main reason that the country is likely to remain the world’s leading power for a great deal longer.

Those who believe otherwise – whether they be investors, emerging market policymakers or geopolitical rivals – are likely to make poor choices.

There is no reason to expect the Dollar to “collapse” or for The Dollar Standard to disappear.

Both are indispensable to the health of the global economy.

There are no replacements in sight.

For all the details, Macro Watch subscribers can log in and watch this video now. It is 18 minutes long and contains 40 slides that can be downloaded.

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