• Jo Miran@lemmy.ml
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    4 days ago

    The US dollar is backed by American consumerism. The main reason to keep dollars in reserve is to be able to trade with the US.

    The biggest threat to the US dollar is the rapidly expanding wealth gap. If Americans can’t afford to consume, there is no real reason to keep dollars in reserve.

    • Rothe@piefed.social
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      4 days ago

      Also, when the US gets openly hostile towards all its trading partners, it kinds of put a dampener on the urge to trade.

      • SkyNTP@lemmy.ml
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        4 days ago

        You aren’t wrong about those actions but it overestimates the importance of “might makes right” and seriously underestimates the importance of soft power. The meme you shared commits the same fallacy, as is the current US administration.

        • geneva_convenience@lemmy.mlOP
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          4 days ago

          The US starts with soft power and sanctions to collectively punish the population. Then if the US backed color revolution fails it resorts to hard power.

    • Aria@lemmygrad.ml
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      4 days ago

      Oh okay so if I sell the EU oil in Euros that’s no big deal then? Not gonna come kill me?

    • infinitesunrise@slrpnk.net
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      4 days ago

      Not really, domestic consumerism is significant but it isn’t anywhere near enough to bring US currency to world reserve status. American treasury bonds are the safe and steady investment of choice for institutions and sovereigns all over the world, and they’re safe and steady because the US military will force it’s way through any obstacle to US hegemony. That’s the real dollar engine and it really does come back to violence (Like everything in capitalism).

      • Saymaz@lemmygrad.ml
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        3 days ago

        The number of people who don’t realize that the US dollar is an imperialist currency in 2025 is insane! Do they even know about the CFA Franc?