{"id":71772,"date":"2023-11-04T06:57:10","date_gmt":"2023-11-04T06:57:10","guid":{"rendered":"https:\/\/adamfayed.com\/?p=71772"},"modified":"2025-04-17T13:23:20","modified_gmt":"2025-04-17T13:23:20","slug":"how-long-will-the-us-dollar-be-the-worlds-reserve-currency","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/es\/uncategorized\/how-long-will-the-us-dollar-be-the-worlds-reserve-currency\/","title":{"rendered":"How long will the US Dollar be the world\u2019s reserve currency?"},"content":{"rendered":"<p>Escribo a menudo en Quora.com, donde soy el escritor m\u00e1s visto sobre temas financieros, con m\u00e1s de 422,4 millones de visitas en los \u00faltimos a\u00f1os.<\/p>\n\n\n\n<p><strong>En las respuestas que figuran a continuaci\u00f3n me he centrado en los siguientes temas y cuestiones<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How long will the US Dollar be the world\u2019s reserve currency?<\/li>\n\n\n\n<li>Are billionaires lucky?<\/li>\n\n\n\n<li>To what extent will technological stocks outperform the S&amp;P 500?<\/li>\n\n\n\n<li>What are the pros and cons of having rules, regulations, and laws?<\/li>\n\n\n\n<li>Is it worth buying a foreclosed home?<\/li>\n\n\n\n<li>What are some of the highest paying human skills?<\/li>\n<\/ul>\n\n\n\n<p>Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en<a href=\"https:\/\/adamfayed.com\/es\/#contact-me\">&nbsp;p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n<p>Es posible que algunos de los enlaces y v\u00eddeos a los que se hace referencia s\u00f3lo est\u00e9n disponibles en la respuesta original.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/How-long-will-the-US-Dollar-be-the-world-s-reserve-currency\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How long will the US Dollar be the world\u2019s reserve currency?<\/strong><\/h2>\n\n\n\n<p>Many people here are probably old enough to remember the Iraq War.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-f30345a6c46f17f37f20959a300da96a\" alt=\"\" style=\"width:460px;height:auto\"><\/figure>\n\n\n\n<p>Yet memories are short.<\/p>\n\n\n\n<p>So few people can probably remember one of the most widely believed conspiracy theories at the time.<\/p>\n\n\n\n<p>Many people believed that Iraq wasn\u2019t just invaded for oil, but because Saddam Hussain \u201cdared\u201d to sell oil in Euros, and not USD.<\/p>\n\n\n\n<p>As the Euro gained market share on the USD, this would threaten the USD and its reserve currency status.<\/p>\n\n\n\n<p>Regardless of Iraq, in the 2000s, many people believed that the Euro could overtake the USD.<\/p>\n\n\n\n<p>After the Eurozone crisis, the US Dollar has strengthened its lead as the number one reserve currency.<\/p>\n\n\n\n<p><strong>The point is:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Don\u2019t believe all media narratives<\/li>\n\n\n\n<li>Nobody can predict the future. Few saw the Eurozone crisis coming.<\/li>\n<\/ol>\n\n\n\n<p>The last point does mean that you shouldn&#8217;t discount the chances of the USD losing its status more quickly than expected.<\/p>\n\n\n\n<p>Currencies are also not investments and get eroded by inflation.<\/p>\n\n\n\n<p>So, having loads of money in the bank in USD (or any currency) carries more risk than people think.<\/p>\n\n\n\n<p>The British Pound lost a lot, quickly, when it lost its reserve currency status.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/Are-billionaires-lucky\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are billionaires lucky?<\/strong><\/h2>\n\n\n\n<p>Sure.<\/p>\n\n\n\n<p>Here is Mark Cuban admitting as much.<\/p>\n\n\n\n<p>Yet, randomness\/chance is a better way of looking at it than luck.<\/p>\n\n\n\n<p>Luck is winning the lottery. It is 100% luck. It is almost impossible for them to replicate it a second time.<\/p>\n\n\n\n<p>Most billionaires have combined many positive skills, attributes and personality traits with vast amounts of luck.<\/p>\n\n\n\n<p>So, if Bill Gates were born today, he would probably become be a multi-millionaire, even if not a billionaire.<\/p>\n\n\n\n<p>The same is true for most self-made billionaires.<\/p>\n\n\n\n<p>So, it isn\u2019t like it is complete luck.<\/p>\n\n\n\n<p>For one thing, if they didn\u2019t take huge chances to start their own business, they could have never had the chance to get lucky in the first place.<\/p>\n\n\n\n<p>Then, unlike buying a lottery ticket, it isn\u2019t enough to sit back, be lazy, and hope for luck to turn you into a billionaire or even a multi-millionaire.<\/p>\n\n\n\n<p><strong>So, it is usually a combination of:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Natural ability, especially for people like sports and entertainment stars with get that wealthy<\/li>\n\n\n\n<li>Trabajo duro<\/li>\n\n\n\n<li>Trabajo inteligente<\/li>\n\n\n\n<li>Luck\/chance\/randomness, including being in the right place, at the right time. Look at the pandemic and how that affected many businesses.<\/li>\n<\/ul>\n\n\n\n<p>So, it isn\u2019t correct to be envious and think billionaires should pay 95% taxes just because luck played a role in their success.<\/p>\n\n\n\n<p>If it were that easy, everybody would take enormous risks and work incredibly hard.<\/p>\n\n\n\n<p>Few people, in reality, are willing to take the kinds of risks that many of these guys took when they were very young.<\/p>\n\n\n\n<p>Most people are cautious in that regard.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/What-are-the-pros-and-cons-of-having-rules-regulations-and-laws\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the pros and cons of having rules, regulations, and laws?<\/strong><\/h2>\n\n\n\n<p>I read an incredible statistic a few months ago.<\/p>\n\n\n\n<p>It was about the New York Railway:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-42f6b26b0ab6075864673c6c3d3123c5\" alt=\"\" style=\"width:475px;height:auto\"><\/figure>\n\n\n\n<p>Apparantly, the cost of adding 1 meter of Railtrack has increased by 50x in the last hundred years.<\/p>\n\n\n\n<p>You read that right.<\/p>\n\n\n\n<p>Not 5%.<\/p>\n\n\n\n<p>Or 50%.<\/p>\n\n\n\n<p>Or even 500%.<\/p>\n\n\n\n<p>But 5000% (50x) even&nbsp;<strong>adjusted<\/strong>&nbsp;for inflation.<\/p>\n\n\n\n<p>This is despite modern technology, which means that fewer workers are needed.<\/p>\n\n\n\n<p>Now, sure, the railway is probably safer than before.<\/p>\n\n\n\n<p>Who knows, it might even look prettier, but I am no expert.<\/p>\n\n\n\n<p>But I am sure that nobody can say it has become 50x better.<\/p>\n\n\n\n<p>The issue is the compounding effects of rules and regulations.<\/p>\n\n\n\n<p>If rules and regulations increase by a small amount over a year, nobody notices.<\/p>\n\n\n\n<p>But a 1%-2% increase in extra regulations a year over a hundred years adds up, especially if there are some years (say in the years where there is a scandal or deaths on the railway) with many new regulations.<\/p>\n\n\n\n<p>The UK tax code is another example. It is The UK tax code is&nbsp;<strong>10 million words and 21,000 pages<\/strong>. long, and always getting bigger. It was 17,000 eight years ago.<\/p>\n\n\n\n<p>I see it in the financial industry all the time. The ordinary consumer and smaller companies pay for regulations. Larger firms get away with it not being a big burden.<\/p>\n\n\n\n<p>That isn\u2019t to mention something else. Answer this question. Do you know anybody who has been protected by financial regulations? Do you even know anybody who knows anybody who has?<\/p>\n\n\n\n<p>99% of people say no, yet some naive people think regulations are there to protect the small guy.<\/p>\n\n\n\n<p>Basic regulations are needed to prevent the worst actor, which is the only positive.<\/p>\n\n\n\n<p>If regulators only focused on those cases, they could also focus more, as they would go narrow and deep, and could focus on preventing Ponzi schemes and the worst cases.<\/p>\n\n\n\n<p><strong>Instead, they have regulated so much that they often don\u2019t know:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The regulations themselves half the time.<\/li>\n\n\n\n<li>How to regulate. It isn\u2019t easy to regulate everything!<\/li>\n<\/ol>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/To-what-extent-will-technological-stocks-outperform-the-S-P-500\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>To what extent will technological stocks outperform the S&amp;P 500?<\/strong><\/h2>\n\n\n\n<p>Long-term, the Nasdaq has outperformed the S&amp;P 500 and Dow Jones.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-da4a79de48ee46222cf3a3f245a148f0\" alt=\"\"><\/figure>\n\n\n\n<p>(Source Four Pillar Freedom)<\/p>\n\n\n\n<p><strong>With that being said, remember:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Nasdaq is more volatile than most if not all, advanced markets.<\/li>\n\n\n\n<li>It took much longer to recover from the 2000 crash than the s@p500<\/li>\n\n\n\n<li>It is less diversified than the S@P500, so it is riskier.<\/li>\n\n\n\n<li>Most tech stocks go to zero. So, most tech stocks underperform. A few greatly outperform<\/li>\n\n\n\n<li>It depends partly on a continuous stream of innovation. So, the internet in the 1990s and 2000s, and maybe AI going forward.<\/li>\n<\/ul>\n\n\n\n<p>I think technology as a group will outperform in the ultra long-term, as new technology has enormous growth potential.<\/p>\n\n\n\n<p>I explained more in the video below during a chat with CNBC.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Will technology stocks outperform long term\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/QKMIglYlK6E?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><strong><\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/Is-it-worth-buying-a-foreclosed-home\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Is it worth buying a foreclosed home?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-f117120a811f0efd05937cbdca1d86e2\" alt=\"\" style=\"width:419px;height:auto\"><\/figure>\n\n\n\n<p>It can be.<\/p>\n\n\n\n<p>Remember, with real estate, you can only beat stock markets long-term by focusing on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Yield rather than capital depreciation<\/li>\n\n\n\n<li>Leverage\/debt through a mortgage or sometimes private debt.<\/li>\n<\/ul>\n\n\n\n<p>So, not capital appreciation.<\/p>\n\n\n\n<p>Sure, some markets can give you capital appreciation, but that is more speculation and can\u2019t be relied upon.<\/p>\n\n\n\n<p>With foreclosed properties, you are more likely to get capital appreciation because you bought it at a discount.<\/p>\n\n\n\n<p>However, a 10%-20% discount isn\u2019t enough to make a massive difference if the rental yield is still relatively low, or you can\u2019t leverage the gains.<\/p>\n\n\n\n<p>Another issue with foreclosed properties is that they either get snapped up very quickly, or you need to know the person in trouble or have a relationship with the bank\/a banker.<\/p>\n\n\n\n<p>I have seen some people in specific overseas markets who have bought absolute bargains with foreclosed properties.<\/p>\n\n\n\n<p>But they have known individual bankers who have given them deals that aren\u2019t available in the market.<\/p>\n\n\n\n<p>That isn\u2019t available to most people.<\/p>\n\n\n\n<p><strong>Like all properties deals, you also need to factor in:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The time and time-adjusted ROI.<\/li>\n\n\n\n<li>All costs, including buying costs. Property usually has extra costs than market investments.<\/li>\n\n\n\n<li>How the investment compares to other opportunities.<\/li>\n\n\n\n<li>The risks and risk-adjusted returns.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.quora.com\/What-are-some-of-the-highest-paying-human-skills\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are some of the highest paying human skills?<\/strong><\/h2>\n\n\n\n<p>Consider recent US Presidents.<\/p>\n\n\n\n<p>Many more conventional ones, such as Obama and Clinton, came from a legal background.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-946051f38efc2b0542e2d9fc5a4e8f1a\" alt=\"\" style=\"width:469px;height:auto\"><\/figure>\n\n\n\n<p>Reagan came from acting.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-a6b3c97f928381288f875880bc992f10\" alt=\"\" style=\"width:464px;height:auto\"><\/figure>\n\n\n\n<p>Trump business and show business.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-fcde5c61803e04377698709bb635ef23\" alt=\"\"><\/figure>\n\n\n\n<p>What do all of these professions have in common?<\/p>\n\n\n\n<p>The need to communicate.<\/p>\n\n\n\n<p>Lawyers are trained to make rational arguments to persuade, and to poke holes in the arguments of others.<\/p>\n\n\n\n<p>Trump and Reagan\u2019s target audience might have been entirely different from Obama\u2019s and Clinton\u2019s, and they weren\u2019t career politicians.<\/p>\n\n\n\n<p>Still, they knew how to communicate with their target audience, even if many hated them outside of that audience.<\/p>\n\n\n\n<p>The same is true in business.<\/p>\n\n\n\n<p>Politics and business aren\u2019t so much a pure popularity contest, as needing to persuade the right people, at the right time.<\/p>\n\n\n\n<p><strong>The ability to communicate can:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Get you a pay rise due to negotiation<\/li>\n\n\n\n<li>Get your business new sales<\/li>\n\n\n\n<li>Save you time and much else<\/li>\n<\/ul>\n\n\n\n<p>The market rewards those who can both communicate and deliver.<\/p>\n\n\n\n<p>The market doesn\u2019t reward those who can hyper-deliver but don\u2019t know how to communicate well.<\/p>\n\n\n\n<p><strong>\u00bfLe duele la indecisi\u00f3n financiera? <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"512\" height=\"288\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg\" alt=\"\" class=\"wp-image-117505\" style=\"width:683px;height:auto\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg 512w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-300x169.jpg 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-768x432.jpg 768w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-scaled.jpg 825w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/become-adams-client\/\">Convi\u00e9rtase en mi cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realice el cuestionario de elegibilidad de clientes<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">P\u00f3ngase en contacto con<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam es un autor reconocido internacionalmente en temas financieros, con m\u00e1s de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>I often write on Quora.com, where I am the most viewed writer on financial matters, with over 686.8 million views in recent years. In the answers below I focused on the following topics and issues: If you want me to answer any questions on Quora or YouTube, or you are looking to invest, don\u2019t hesitate [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":71774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[1],"tags":[31295],"class_list":["post-71772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-how-long-will-the-us-dollar-be-the-worlds-reserve-currency"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/71772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/comments?post=71772"}],"version-history":[{"count":2,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/71772\/revisions"}],"predecessor-version":[{"id":136007,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/71772\/revisions\/136007"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media\/71774"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media?parent=71772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/categories?post=71772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/tags?post=71772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}