Last summer I gave a talk on dedollarization, and as customarily occurs a question and answer session followed. Most of the queries and comments focused on the outlook for the dollar, prospects for gold and Bitcoin, and the comparative advantages of the growing BRICS union versus those of Western (US dollar, British pound, Euro, etc.) nations.
One audience member expressed deep doubt over most of the assertions regarding growing diversification away from dollar dependence. Skepticism is generally scholarly and typically a source of improved inquiry, but the foundation of this gentleman’s reservations were truly unorthodox. In a friendly exchange, he asserted that the strength of the US dollar comes first, foremost, and mostly from the taxing power. Washington DC’s ability to extract copiously from America’s $29 trillion economy, he held, is why greenbacks are sought and…
