"As much as other countries don't want to be beholden to the dollar, where else are they going to turn? The Yuan? The currency of a country where its leaders decide who gets rich and who doesn't? Where the leaders literally manipulate the price of their currency? Many people have a really hard time investing in China due to their lax rule of law protecting their investments. Given that, how is their currency going to replace the dollar? Do you really want the value of your currency holdings to be at the whim of the Chinese Communist Party? Besides, decades of a one-child policy has China facing a huge demographic wall in the coming years that will end up being a huge economic headwind to their continuing rapid growth. I won't be surprised if they end up trying to stealthily inflate their way to show continued growth. What happens to the Yuan when that all comes crashing down?"

I posted this earlier in the thread, but I forgot the biggest threat to De-dollarization.

A certain portion of congresscritters who think defaulting on U.S. debt (that has already been authorized to be spent) by not raising the debt ceiling is just perfectly fine.

Dumb. Dumb. Dumb.

The main reason the dollar is the world's currency is because of the rock solid stability it represents. Everyone knows how dynamic and solid the U.S economy is (and has been for over 80 years). Even when the U.S economy hits a downturn that us citizens think is terrible, it is really just a temporary hiccup. The rest of the world would literally kill to have the economic stability enjoyed by the U.S.

Now some congresscritters want to throw that away by simply not paying all of the bills for the spending they have already authorized, even though the federal government can afford it.

It is already crazy how much congress has flirted with catastrophe by playing chicken with the debt ceiling the past decade. That craziness has already hurt the dollar. To actually default would be pure insanity and could lead to de-dollarization depending upon how it plays out.

Listen, I get the need to get the federal budget under control (both decreasing spending and increasing revenue) but that said, being stupid with the debt ceiling is not the way to do it. The time to do it is during the budgeting process and then during the actual spending process when we consider what the money is spent on. The worst time to do it is after the money is spent and the bill comes.

It is like going on a spending binge on a credit card that you later regret and then when the bill comes, refusing to pay it. It means eventually you will lose you luxury home and your lavish lifestyle, but you will stupidly be proud you didn't pay that credit card bill.

It is the literal definition of cutting off your nose to spite your face.

Dumb. Dumb. Dumb.