{"id":19955,"date":"2023-04-17T20:44:06","date_gmt":"2023-04-17T20:44:06","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economist-and-political-scientist-refute-claims-of-us-dollars-demise-despite-trend-of-de-dollarization-news-bitcoin-news\/"},"modified":"2023-04-17T20:44:06","modified_gmt":"2023-04-17T20:44:06","slug":"economist-and-political-scientist-refute-claims-of-us-dollars-demise-despite-trend-of-de-dollarization-news-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economist-and-political-scientist-refute-claims-of-us-dollars-demise-despite-trend-of-de-dollarization-news-bitcoin-news\/","title":{"rendered":"Economist and Political Scientist Refute Claims of US Dollar’s Demise Despite Trend of De-Dollarization News \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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This year, there has been a flurry of news reports and opinion editorials discussing an alleged de-dollarization trend amid a wave of disclosures associated with the BRICS bloc. In a recent article, the American political scientist and author Ian Bremmer insisted that claims of the U.S. dollar dying are overblown. In addition to Bremmer\u2019s comments, economist Paul Krugman also asserted in a recent op-ed that the greenback isn\u2019t going away anytime soon and called some of the speculators \u201c\u2018Weimarists,\u2019 people who are always predicting hyperinflation.\u201d<\/strong><\/p>\n

Political Scientist Ian Bremmer Insists Dollar Death Speculation Is Greatly Exaggerated<\/h2>\n

The subject of de-dollarization<\/a> has been a topical discussion in 2023, as several market observers suspect<\/a> the United States dollar could collapse in the near future. Many conversations and debates revolve around the BRICS nations (Brazil, Russia, India, China, and South Africa) and the alliances<\/a> these countries have made. Several decisions<\/a> have been made with help from members<\/a> of the Organization of the Petroleum Exporting Countries (OPEC) to ditch the dollar in gas and oil settlements.<\/p>\n

Moreover, worldwide Google Trends data<\/a> shows that the term \u201cde-dollarization\u201d reached the highest score of 100 in terms of search interest during the week of April 2 to April 8, 2023. Google Trends data indicates that the subject began gaining momentum during the last week of March 2023. Prior to that, interest rose during the end of January 2023, but not nearly as high as the week of April 2-8 recorded by Google Trends\u2019 12-month metrics. Although interest has risen, the internet has been flooded with stories discussing the U.S. dollar\u2019s theoretical doom and its removal from the throne of the world\u2019s dominant reserve currency.<\/p>\n

Amid these stories, Ian Bremmer, the founder of Eurasia Group and an author known for his knowledge of global political risk, has offered a different perspective<\/a> on the alleged collapse of dollar dominance. Bremmer acknowledges the trend of de-dollarization headlines by highlighting eight different articles. The author says that these stories have \u201cprovided a fertile ground for gold bugs, crypto shills, hyperinflation truthers, techno-libertarians, anti-imperialists, and run-of-the-mill grifters to stoke fear about the dollar\u2019s imminent death and its supposed catastrophic consequences for the United States and the global economy.\u201d<\/p>\n

Bremmer shows USD usage data<\/a> from the Federal Reserve and insists that \u201crumors of the dollar\u2019s death are greatly exaggerated.\u201d He also asserts that, by most measures, the greenback \u201cremains incontrovertibly dominant in global trade and finance.\u201d The Eurasia Group founder stresses that the U.S. dollar possesses several \u201cdesirable features,\u201d such as offering stability while also being \u201cliquid, safe, and convertible.\u201d However, Bremmer concedes that the greenback\u2019s dominance could slip someday, as other dominant currencies have in the past. The author states:<\/p>\n

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None of this means that the dollar\u2019s advantage can\u2019t slip, of course. After all, every reserve currency that came before the dollar was dominant until the very moment it ceased to be.<\/p>\n<\/blockquote>\n

Economist Paul Krugman Claims U.S. Dollar\u2019s Role \u2018Looks Pretty Secure\u2019<\/h2>\n

The Eurasia Group founder is not the only one who feels that the dollar isn\u2019t going to lose dominance anytime soon. Economist Paul Krugman<\/a> also published an op-ed<\/a> about the de-dollarization subject in The New York Times. Krugman takes aim at gold bug Peter Schiff<\/a> and \u201cRich Dad, Poor Dad\u201d author Robert Kiyosaki<\/a>. The op-ed says that some of these individuals are \u201cWeimarists,\u201d insisting that they have been predicting Weimar Republic-like inflation<\/a> in the United States. Krugman insists that the U.S. dollar\u2019s dominance is not really at risk, and the \u201cdollar\u2019s role looks pretty secure.\u201d<\/p>\n

\u201cThe dollar has three big advantages,\u201d the Nobel laureate said. \u201cOne is incumbency: Since everyone is already using dollars, it would take exceptional circumstances to get them to switch. A second is that U.S. financial markets are open: Unlike China, we don\u2019t impose controls on people trying to move money into or out of the country. The third is the rule of law,\u201d Krugman added.<\/p>\n

Concluding his \u201csubscriber-only newsletter,\u201d Krugman says there\u2019s \u201cone major caveat.\u201d He believes there\u2019s a possibility that the U.S. could default on debt because the Republican-controlled House refuses to raise the debt ceiling. In terms of the political spectrum, Krugman is a left-leaning Democrat<\/a> and is rated<\/a> \u201cmost liberal\u201d by allsides.com. \u201cWho will trust the currency of a nation that appears to have politically lost its mind?\u201d Krugman asks in his NYT op-ed. \u201cIf that happens, the threat to the dollar\u2019s reserve-currency status will be the least of our problems.\u201d<\/p>\n

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\nTags in this story
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anti-imperialists<\/a>, brics<\/a>, BRICS Nations<\/a>, convertible<\/a>, crypto shills<\/a>, Currency<\/a>, de-dollarization<\/a>, debt ceiling<\/a>, Default<\/a>, Democrat<\/a>, Eurasia Group<\/a>, Financial Markets<\/a>, Global Economy<\/a>, Gold bugs<\/a>, grifters<\/a>, hyperinflation truthers<\/a>, Ian Bremmer<\/a>, inflation<\/a>, liberalism<\/a>, Liquid<\/a>, New York Times<\/a>, opec<\/a>, Paul Krugman<\/a>, Peter Schiff<\/a>, political risk<\/a>, Republican House<\/a>, reserve currency<\/a>, robert kiyosaki<\/a>, rule of law<\/a>, Stability<\/a>, techno-libertarians<\/a>, U.S. dollar<\/a>, US dollar demise<\/a>, Weimar Republic<\/a><\/div>\n<\/div>\n

What do you think the future holds for the U.S. dollar as the world\u2019s dominant reserve currency, and how might the trend of de-dollarization impact the global economy? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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