The greenback…is not just America’s currency. It’s the world’s.
But as astonishing as that is, what may be even more astonishing is this: The dollar’s reign is coming to an end.
I believe that over the next 10 years, we’re going to see a profound shift toward a world in which several currencies compete for dominance.
The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.