🇺🇸 Steve Hanke: The dollar isn't dying, but Washington is making it vulnerable
I've been hearing a lot about the end of the dollar lately, so I was interested to hear Steve Hanke push back against that argument.
His answer was surprisingly emphatic.
The dollar remains extraordinarily strong, and Hanke believes America's AI investment boom is actually helping keep it that way.
Foreign investors want exposure to American technology companies. To buy those assets, they need dollars.
And with roughly 60–65% of global stock market capitalization concentrated in the United States, replacing the dollar is much harder than the headlines suggest.
But Hanke isn't dismissing the risks.
He thinks Washington is undermining its own currency through sanctions, tariffs and uncontrolled government spending.
China is buying gold and building alternative financial systems, but its capital controls make the yuan a difficult replacement. The euro isn't making much progress either.
Hanke's point is that a currency doesn't lose its global dominance simply because its government makes mistakes.
It needs a credible challenger.
And right now, despite America's growing debt and increasingly aggressive economic policies, he doesn't see one.
@steve_hanke
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