The US dollar can’t readily be replaced as reserve currency.
Nixon took the USD off the gold standard over a banking holiday. It may not be replaced but if trade goes on a gold exchange, which seems like BRICS might do, it can happen fast.
Gold isn’t a feasible world reserve currency. It might be handy to have, but most people don’t have it. Where as the number of US bills in global circulation (M0) is so large, that any country wishing to print/distribute enough of their currency to replace it - would automatically depreciate that currency many times over.
The world uses the US dollar as the reserve currency because it already got everywhere, it’s already out there in people’s hands in the strangest of places. Mostly where borders meet, and instability exist.
America’s hard power would have to decline far far far faster than it currently is… and I can’t think of what would make that happen. Maybe if Trump passes a law that all US military vehicles have to be dismantled and destroyed? Outside of that, the US dollar as the reserve currency will likely remain.
Also BRICS may not have enough gold in reserve to back their currencies, and it’s unlikely so many countries would all agree to risk that instability all at once. So I don’t agree with your idea that “it can happen fast”.
…all that said, America’s real problem is that it probably doesn’t have a democracy anymore. Like, unless participation and protest numbers go through roof - that part of America may be… damaged beyond repair. That’s what citizens should be focusing on.
Nixon took the USD off the gold standard over a banking holiday. It may not be replaced but if trade goes on a gold exchange, which seems like BRICS might do, it can happen fast.
Gold isn’t a feasible world reserve currency. It might be handy to have, but most people don’t have it. Where as the number of US bills in global circulation (M0) is so large, that any country wishing to print/distribute enough of their currency to replace it - would automatically depreciate that currency many times over.
The world uses the US dollar as the reserve currency because it already got everywhere, it’s already out there in people’s hands in the strangest of places. Mostly where borders meet, and instability exist.
America’s hard power would have to decline far far far faster than it currently is… and I can’t think of what would make that happen. Maybe if Trump passes a law that all US military vehicles have to be dismantled and destroyed? Outside of that, the US dollar as the reserve currency will likely remain.
Also BRICS may not have enough gold in reserve to back their currencies, and it’s unlikely so many countries would all agree to risk that instability all at once. So I don’t agree with your idea that “it can happen fast”.
…all that said, America’s real problem is that it probably doesn’t have a democracy anymore. Like, unless participation and protest numbers go through roof - that part of America may be… damaged beyond repair. That’s what citizens should be focusing on.