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China wants to dump the US dollar theyre currently trying to form an Asian fund with other Asian countries to cut US dollar dependencies which could be potentially very bad for the US economy and cause inflation to go up in the long term theres over 6 trillion U.S dollars sitting offshore in bank accounts in countries like Russia China Japan and India and if these countries were to all of a sudden no longer need the US dollar to facilitate trade or to buy oil those dollars would end up flowing back onto U.S Shores increasing the domestic money supply and causing inflation to Surge similar to how it did in the 1970s now the good news is were still likely a long way off from this happening data from the IMF shows its still 58 percent of global Reserve currencies are in dollars with 20 being in euros and only three percent being in Chinese Yuan but watch for D dollarization to become a trend over the next one to two decades and for the US dollar to incrementally lose its value
