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re: Will the U.S.A. ever lose Reserve Currency status?

Posted on 12/24/25 at 7:51 am to
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52515 posts
Posted on 12/24/25 at 7:51 am to
quote:

The same currency you use and is devalued by your government yearly.


Same old argument, cash is not a primary mechanism for saving. Small inflation drives the economy.

Hoarding "money" is going to lead to failure.

But only crypto bros argue people invest in cash instead of securities or other assets.
Posted by Killboy58030719
Member since Feb 2025
22 posts
Posted on 12/24/25 at 8:03 am to
I have read many books on the history of currencies and global currencies.

Please read one and then come back to the board.
Posted by TDFreak
Coast to Coast - L.A. to Chicago
Member since Dec 2009
9254 posts
Posted on 12/24/25 at 9:15 am to
I wonder if the ancient Romans asked if the denarius would ever lose reserve currency status.

It’s intriguing to say the least. How and when it will go down, that is. Slowly or with the swiftness? And what will replace it? Could the US adapt/evolve to keep the dollar relevant?

I feel like the US’s military might (along with the economic might) is in part key to its lasting strength. If we need resources: we’ll take it with force. And defend assets with force too.
Posted by Shepherd88
Member since Dec 2013
4931 posts
Posted on 12/24/25 at 9:51 am to
quote:

I feel like the US’s military might (along with the economic might) is in part key to its lasting strength. If we need resources: we’ll take it with force. And defend assets with force too.


This is the whole reason we start proxy wars currently and we’re involved in stuff like Ukraine, saving Argentina, conflict in Venezuela. It’s to create further dependence on the USD.

To the original question though about economic consequences.. the dollar won’t go away overnight for one. It’ll be a slow process of international trade happening in a different form. Inflation will creep up in the usd. Assets and markets will still appreciate on a nominal yield but not so much in real yield. See what’s happened with the FTSE and the British pound post Bretton Woods.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52515 posts
Posted on 12/24/25 at 10:03 am to
quote:

have read many books on the history of currencies and global currencies.

Please read one and then come back to the board.


Ah yes the YouTube expert... The logical playbook of the crypto bro.

If society collapsed my Internet money is worth more than gold or firearms.

Trust me bro
Posted by Shepherd88
Member since Dec 2013
4931 posts
Posted on 12/24/25 at 10:22 am to
USD losing its reserve status is far far from a societal collapse. lol
Posted by Art Blakey
Member since Aug 2023
290 posts
Posted on 12/24/25 at 2:48 pm to
If so, what does that switch look like? What would happen to our economy?

The transition has already begun, at least on the margins.

Foreign central banks stopped growing their UST reserves in roughly 2014. Gold is increasingly the reserve asset of choice for net producers. The petroyuan share of global oil trading, while still dwarfed by the petrodollar is growing steadily.

It doesn't look like past rotations from Dutch Guilder to Pound Sterling to USD. We're moving to a multi-currency mercantilism with gold serving a key role as settlement for trade imbalances instead of USTs.

No one wants global reserve status for their own currency, least of all the Chinese as they have learned from our mistakes and have no desire to offshore their manufacturing base to maintain GRC status while civil unrest brews at home due to the hollowing out of their middle class.
Posted by SaintsTiger
1,000,000 Posts
Member since Oct 2014
2105 posts
Posted on 12/24/25 at 5:35 pm to
quote:

If so, what does that switch look like? What would happen to our economy?


It’s look like the British Pound post WW2. But better. Still strong.

Also other countries will want to sell to the most lucrative consumer market in the world that is America. So wether we have the official label of reserve or not, the world will still use dollars to do business with us
Posted by cadillacattack
the ATL
Member since May 2020
10713 posts
Posted on 12/24/25 at 8:07 pm to

ask yourself, what happened to the economies of the countries who previously sponsored the world’s reserve currencies …

The common denominator? Each of those Reserve currencies were heavily debased by their respective governments. In history, there has never been a fiat currency that didn’t eventually fail ….

This post was edited on 12/24/25 at 8:14 pm
Posted by I Love Bama
Alabama
Member since Nov 2007
38434 posts
Posted on 12/25/25 at 5:32 pm to
Do you not get exhausted yelling from the rooftops about how Bitcoin is dumb?

How many years are you going to keep this up?

Why not talk about investments you like rather than ones you don’t like?
Posted by LSURussian
Member since Feb 2005
134822 posts
Posted on 12/25/25 at 5:41 pm to
Every Empire's currency has come to an eventual end as the world's dominant currency.

So, based on that historical fact, yes, the U.S. dollar will lose its dominance one day.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52515 posts
Posted on 12/25/25 at 8:50 pm to
quote:

Do you not get exhausted yelling from the rooftops about how Bitcoin is dumb?


No

quote:

How many years are you going to keep this up?



Until it fades away

quote:

Why not talk about investments you like rather than ones you don’t like?


I do both, but the money talk has turned into gambling talk since about 2020.

I generally answer questions on here as well.. Guessing you didn't venture into those threads. It used to be quite frequent that crypto bros went into threads telling people that index funds are stupid and dump it all on red.

Happily the large majority that invests in things like crypto has moved on to the next get rich scheme.

So I talk less and less about crypto on here everyday
This post was edited on 12/25/25 at 8:54 pm
Posted by 21JumpStreet
Member since Jul 2012
14895 posts
Posted on 12/25/25 at 8:53 pm to
Yup it will be bitcoin
Posted by Tiger4life306
Member since Apr 2016
780 posts
Posted on 12/26/25 at 6:32 am to
quote:

How many years are you going to keep this up?

Until it fades away


I am not a crypto guy but this is a lot easier said than done.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52515 posts
Posted on 12/26/25 at 8:01 am to
quote:

I am not a crypto guy but this is a lot easier said than done.


Agreed, Bitcoin is damn near 20 years old, basically ancient in terms of technology. Only investment thesis left is basically it's a cult, so there are some true believers. However as the fomo wore off people talk about it less and less.

The amount of crypto threads on this board is probably down 80% just from a few years ago. There used to be daily nft threads.

Meme stocks was replaced by crypto, which is now replaced by AI.
This post was edited on 12/26/25 at 8:02 am
Posted by OccamsStubble
Member since Aug 2019
10020 posts
Posted on 12/26/25 at 8:15 am to
225 years and 43 presidents: US builds 10T debt

16 years and three presidents: US builds 28T debt

This is fine gif


Converting dollar investments into gold or silver is looking at the leaders who are perpetuating this hidden tax (inflation) and saying frick yall
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476312 posts
Posted on 12/26/25 at 9:32 am to
Probably at some point, but the world would collapse and devolve multiple centuries worth of progress to get there. Like the 1000 years in Europe after the fall of the Western Roman empire.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476312 posts
Posted on 12/26/25 at 9:34 am to
quote:

We f'd the goat in the a when we weaponized the dollar against Russia. When you are the global reserve currency you cannot do stuff like that you have to remain neutral


Bro wtf. USD was the world reserve currency during the Cold War.
Posted by Pimphand
Member since Sep 2021
5078 posts
Posted on 12/26/25 at 9:39 am to
quote:


Bro wtf. USD was the world reserve currency during the Cold War.


No shite sherlock?

Talking about the stupid shite in 2022 during the start of the Ukrainian conflict.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476312 posts
Posted on 12/26/25 at 9:42 am to
quote:

Talking about the stupid shite in 2022 during the start of the Ukrainian conflict.


Based on this premise

quote:

you have to remain neutral


We were NEVER neutral

How were we neutral during the Cold War?

How did we do economically during the Cold War and after?
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