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RE: USD - Value Drop

in #politics7 years ago

Why will the dollar fail? It is the worlds reserve currency and will continue to be so. Even cryptocurrency is valued in dollars. The weakness and strength of any currency is relative. It is still the only safe haven currency asset alongside jpy. The article doesnt talk about real interest rate diffential, a primary reason why currencies weaken or strengthen.

The largest economy in the world will suddenly collapse because some random country decided to sell oil in a different currency. And how much did they charge for oil in a different currency? They used the fx rate of that currency versus the dollar. Gold standard was let go because it was a junk concept and was impractical. Which is why gold crashed post that and not dollar and the world was fine after that. What backs a currency is the gdp, the economic output of a country and not some metal that has a perception of value.