Why the De-Dollarization Won’t Happen Any Time Soon
<p>You may have come across catastrophic headlines saying the US was about to lose its global reserve currency status.</p>
<p>It won’t.</p>
<p>Here’s why.</p>
<p><em>If you don’t know anything about money, read </em><a href="https://auresnotes.com/what-is-money/" rel="noopener ugc nofollow" target="_blank"><em>this article</em></a>, <em>written by yours truly.</em></p>
<h1>What Makes a Currency Valuable?</h1>
<p>A currency is as valuable as what you can buy with it.</p>
<p>…</p>
<p>Let me say that again.</p>
<p><strong>A currency is as valuable as what you can buy with it.</strong></p>
<p>Let’s take two examples:</p>
<ol>
<li>The Australian dollar</li>
<li>The Venezuelan bolivar</li>
</ol>
<p>What can you buy with an Australian dollar?</p>
<ul>
<li>Food</li>
<li>Gas</li>
<li>Oil</li>
<li>Copper</li>
<li>Coal</li>
<li>A ticket to Melbourne zoo</li>
<li>Whatever Australia produces (that is, <em>a lot</em>).</li>
</ul>
<p>What can you buy with a Venezuelan bolivar?</p>
<ul>
<li>Not much. The country is under economic sanctions and Venezuela does not produce anything valuable (besides heavy oil).</li>
</ul>
<p>The Australian dollar is valuable because you can buy lots of things with it (but not only, see below)</p>
<p><a href="https://medium.datadriveninvestor.com/why-the-de-dollarization-wont-happen-any-time-soon-49c8adf4159b"><strong>Read More</strong></a></p>