But it is also possible that it would happen very suddenly, without all involved parties holding hands.
I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.
Here is a question I have been pondering for years:
A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.
In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?
It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?
