Inflation terrifies people for a lot of reasons, including its erosion of the purchasing power of wages and the value of dollar-denominated debt. But in May, a leading foreign exchange trader named Stanley Druckenmiller warned of an even bigger long-term risk of inflation: That it might threaten the U.S. dollar\u2019s status as the world\u2019s dominant \u201creserve currency\u201d.David Morris: Druckenmiller\u2019s Inflation Warning Good for Crypto \u2014 CoinDeskThe U.S. dollar $ is overwhelmingly the preferred currency for international trade \u2014 just think for instance to the huge global oil trade is dollar-denominated and settled. The dollar is also the most widely held foreign currency in central banks.This produces major economic benefits for Americans \u2014 which represent an enormous privilege for them, both holders and beneficiaries of the U.S. dollar \u2014 and its decline could harm the U.S. economy.We\u2019re still miles away from the kind of hyperinflation that can truly wreak havoc on both the currency or the economy, as shown in the real-life cases around the world in countries such as Lebanon (144.1%), Venezuela (1743%), and Argentina (50%) just to mention a few, and the most acute cases of hyperinflation recorded to this day.Argentina\u2019s annual inflation rate tops 50% as global prices soar | ReutersVenezuela subtracts six zeros from currency, second overhaul in three years | ReutersLebanon follows Venezuela into hyperinflation wilderness | ReutersThere\u2019s also a lot of evidence that current U.S. inflation is highly concentrated in a few sectors, and bond investors have remained stubbornly and tenaciously skeptical about inflation being just \u2018transitory\u2019, despite concerns of its higher-than-expected rates.The Fed\u2019s use of \u2018transitory\u2019 to describe inflation may be \u2018transitory\u2019 \u2014 CNNBut whether inflation pushes things along or not, it\u2019s clear the dollar\u2019s reserve status is already under pressure.<\/p>","protected":false},"excerpt":{"rendered":"
Inflation terrifies people for a lot of reasons, including its erosion of the purchasing power of wages and the value of dollar-denominated debt. But in May, [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/5633"}],"collection":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/comments?post=5633"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/5633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media?parent=5633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/categories?post=5633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/tags?post=5633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}