Damn, everyone knows the dollar is a colossus with feet of clay – because it’s not backed by gold, only by its public image in the world. Same as all other currencies, actually. I started thinking this way about 15 years ago… like, it’s gonna collapse, it’s gonna collapse… but it just doesn’t fall!!! What the hell is keeping it up???
It’s like in The Big Short – you think “this is it, this is the end,” but the end just keeps not coming. The unstable system doesn’t destroy itself; in fact, people keep it going for own peace of mind and to avoid having to adapt to something new.
I actually think that when all fiat money finally disappears (hopefully soon) and only electronic money remains, we could get rid of all the reserve currencies. Because we could set it up the way when you cross any border, your money automatically converts into the currency of the country you’re entering. And exchange rates should be based on some new ranking of countries. In this new ranking, each country’s level of debt should definitely be listed – because indebted countries, companies, and people are not attractive for investors.
