A bipolar currency regime will replace the dollar’s exorbitant privilege

February 9th, 2023 Gold comments

Financial Times/Nouriel Roubini/2-6-2023

photograph of 100 yuan and $100 bills “Sceptics argue that the global share of the US dollar as unit of account, means of payment and store of value hasn’t fallen much, despite all the chatter about a terminal decline. They also point out that you can’t replace something with nothing — as former US Treasury secretary Lawrence Summers put it: ‘Europe is a museum, Japan is a nursing home and China is a jail.’”

USAGOLD note: Roubini argues that the dollar’s exorbitant privilege is nearing an end as the world moves toward a bipolar regime – one centered on China’s renminbi and the other on the US dollar.