Foreign Affairs: The End of National Currency

An incisive piece by Benn Steil…

“The dollar’s privileged status as today’s global money is not heaven-bestowed. The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past. This puts a great burden on the institutions of the U.S. government to validate that faith. And those institutions, unfortunately, are failing to shoulder that burden. Reckless U.S. fiscal policy is undermining the dollar’s position even as the currency’s role as a global money is expanding.”

As a solution, Steil explores “private money” – but cautions that “there is little to commend in digging up gold in South Africa just to bury it again in Fort Knox…. the question is how long such a well-managed fiat system can endure in the United States. The historical record of national monies, going back over 2,500 years, is by and large awful.”

Leave a Reply

Your email address will not be published.