This is just one example of the trend that has started and that will continue over the next years and decades. With the United States stepping away from the role of guarantor for free trade, various economies will find ways to deal bilaterally without using the US Dollar. We’ve already seen a shift towards precious metals as a form of reserve currency instead of the Dollar. Now the monetary trade volume of the Dollar is also at risk. When the Dollar no longer is the undisputed world reserve (and trade) currency, it will become incredibly difficult for the US to sustain its current level of deficit.
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This is just one example of the trend that has started and that will continue over the next years and decades. With the United States stepping away from the role of guarantor for free trade, various economies will find ways to deal bilaterally without using the US Dollar. We’ve already seen a shift towards precious metals as a form of reserve currency instead of the Dollar. Now the monetary trade volume of the Dollar is also at risk. When the Dollar no longer is the undisputed world reserve (and trade) currency, it will become incredibly difficult for the US to sustain its current level of deficit.