Dollar Hegemony is Ending

by Karl Denninger Market-Ticker.org

If you’ve been paying attention you know that we’ve had a wee case of inflation….. and its not going back down very quickly either.

What’s also happened, however, is that the dollar is losing its “prime” International Trade status.

These two things are connected.

Many people think this is some attempt to “take revenge” or “knock us down a few pegs” (or entirely off the ladder.) No. Simply put this is just merchants acting in their own best interest — nothing more and nothing less.

That’s the worst of all worlds for the US when you get down to it. You see, its easy to blame someone and point fingers otherwise, but when you have a whole bunch of people who simply come to the conclusion that the dollar is not preferred because neither it or our government is as stable as their native currencies you’ve got a much more-difficult problem on your hands than you might think.