The Dollar Is Dying

Nations are looking for a new reserve currency as inflation eats up the old one.

We are nearing the final days of the dollar’s reign as the world’s reserve currency. The greenback has lost 11 percent of its value since the beginning of the coronavirus crisis. It may lose another 10 percent this year. The Federal Reserve lifted its key interest rate by a quarter of a percentage point on Wednesday to combat skyrocketing inflation. At the same time, policymakers projected six more rate hikes this year. These moves should slow the inflation rate and economic growth by driving up interest rates on auto loans, credit card rates, mortgages, home equity loans and other types of borrowing. Anyone with a considerable sum of variable rate debt should brace for some pain.

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