There is no question that the US dollar’s position of being the Global Reserve Currency provides unparalleled strength as well as flexibility in borrowing. Some may argue, especially during this election cycle, there is too much flexibility. Mark Mansfield and Hal Kempfer take on this critical currency discussion, looking at opportunities and peril in our modern age, and all of it aimed at preparedness on this episode of STRAT. The US dollar dominance and its preservation has become a principal theater for the great power struggle between the United States, China, and Russia—placing the future of the Western or Liberal international order in the balance.
While the dollar is the only truly global currency in the world, and is widely used for transactions, pricing, settlement, and investment by governments and private actors outside the United States, there are other powers want to change that status, creating an alternative reserve currency. In addition, the role of cryptocurrency is discussed. As we all know, it is a phenomenon that is being actively explored and researched by academics, policymakers, investors, and consumers. While some equate it to “Dutch Tulips” of an earlier century, others feel it is truly the future of money. It is unknown what would happen to global or geographic financial stability if cryptocurrency replaced fiat currencies, but Mark and Hal take on this subject and more.