The dollar is losing its reserve status at a faster pace than generally accepted as many analysts have failed to account for last year’s wild exchange rate moves, according to Stephen Jen.
I do think he’s correct there. The ability to issue unlimited currency is premised on constant demand for the dollar. Once that demand starts dropping, then dollar based economy starts shrinking.
I do think he’s correct there. The ability to issue unlimited currency is premised on constant demand for the dollar. Once that demand starts dropping, then dollar based economy starts shrinking.