The advantage the USD has is multiple. Many of the physical dollars, the majority in fact, are outside the US. Also, there is trillions of dollars in debt that was written in USD that is going to be out there another 30 years. I think the Fed could insulate the USD by issuing 50 and 100 year bonds.
Finally, for all its faults, and they are many, the US banking system still is the most advanced. Until this is usurped, I think it is tough to challenge the dollar on a global scale. Even today, not only are major international deals done with US banks, most are headlined by one.
This will only get more tilts as the European banking system starts breaking down.
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You're right about the 50 year and 100 year bonds. I suppose I tend to think about things within my lifespan. A country does not have to think in such limited terms.
I suppose that gives time for the euro dollars to start winding down to whatever comes next. I also agree that the Euro is not a viable alternative for a reserve currency. I think China will have a go at becoming the reserve currency; but, I don't think it will take off the way the CCP thinks it will.
I covered this in my latest video.
The problem I see with China is the fact that they have trust issues on an international scale. The numbers are hard to trust coming out of China.
Plus, what do we truly know about their banking system and how solid it is?
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