The U.S. Dollar Isn't Going Anywhere

I don't see this happening as well. The dollar has declined in the last six months, but it is still at a 10-year high when compared to the of the other countries we trade with (chart from Bloomberg).

Additionally, there are still very large holdings from other countries that have continued to grow over the past few years (chart also from Bloomberg) with the majority of those holdings being in equities, not treasuries or corporate investments.

There COULD be a shift in the long-run to something that is away from the dollar to something more "globally federated", but that would require a lot of structural changes (the dollar is still the most freely convertible financial instrument as opposed to something like the Yuan).

LTC Eugene Chu I'm hanging with the dollar...

An excellent, though elementary, presentation. Thanks for sharing it. However, it does skim past one of the most important points at the 4 minute mark. "Why would other nations peg [the value of their currency] to the U.S. dollar?" The presenter provides three reasons. The first is the main reason and the other two follow logically from the first. "Provides stability to their own currency" Absolutely true. Sadly, he misses the reason that it is "absolutely true." The stability of the dollar was not based on the fact that the U.S. had the world's largest economy. There's no stability in that. Other nations singly or in a trading partnership, could surpass the U.S. economy especially if, as we see today, the government gaining greater control over the economy and impeding it through ill-advised policies. At the 7 minute mark, I was tempted to stop watching when the presenter dismissed the trade imbalance as "currently a deficit." Uh, it's been at a deficit for a very long time. And his defense of the dollar, that it is still used as the currency in the vast majority of international trade, is a non sequitur. Any currency designated as the "reserve currency" will then be used in the vast majority of international trade. And, just as the dollar became the reserve currency virtually overnight after an international conference declared it so, another such conference could have the same effect. Ah, the presenter redeemed himself at the 7 minute 40 second mark as he acknowledged the importance of political stability. This is quite possibly the greatest asset of the U.S. Well, at least up until now. He credits the central bank with providing that stability without political interference. Wait. What? He starts off his argument for the importance of political stability as a key consideration by divorcing political interference from economic stability in the U.S.? I can't wait to see where he goes from there. I see. He doesn't. He drops that subject like a hot potato and moves on to military strength. Okay, you may stop here. I'll finish watching and comment if there's anything worth commenting on, but I don't expect it. ...well, I made it and sadly, there was nothing to add