Joe Biden is dethroning King Dollar in real time. The US dollar’s financial dominance is under siege from a uniquely bad combination of foreign and domestic policies, and Americans should be deeply concerned by the fallout if the dollar loses its 80-year reign as the world’s reserve currency.

That’s from an article by EJ Antoni and Peter St. Onge, back in March 2023. The use of financial sanctions is the trigger for foreigners to flee US dollar assets. The result?

If foreigners no longer want them for trade, central bank reserves, private wealth funds, and the official currency of about a dozen countries, all those dollars have nowhere to go but back to us in a flood like our country has never seen. This flood will compete for goods and services in the US against the dollars already here as decades of accumulated trade deficits come flooding back all at

Keep reading this article on Econbrowser Blog - James Hamilton & Menzie Chinn.

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