Donald Trump and the Almighty Dollar
August 23, 2023
In a recent interview with Larry Kudlow, the former President Donald Trump asserted that the dollar is losing its dominance as the world’s international reserve currency, as the U.S. comes to resemble a third-world country. With characteristic hyperbole, he warned that the dollar’s loss of its reserve status would be worse than losing any war.
Let’s just say that international economics is not one of Trump’s strong suits.
The key point that Trump missed is that, for the dollar to lose its dominant status as the world’s reserve currency, it must first lose that dominance to another one of the world’s major currencies. Today, there is no serious challenger to the dollar anywhere in sight.
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