Is the Dollar Doomed? Rogoff's Warning: "Our Dollar, Your Problem" Becomes *Your* Problem.

Rogoff's "Our Dollar, Your Problem" argues the dollar's dominance is waning due to internal pressures, sanctions, and Trump's policies, impacting US borrowing and global power.

1. The U.S. dollar's global dominance peaked in 2015 and is now in a gentle but potentially accelerating decline, primarily due to concerns about the U.S. fiscal deficit and rising interest rates.
2. The Federal Reserve's independence is under threat from both the left and the right, potentially leading to policies that undermine the dollar's stability, especially during times of crisis like wartime.
3. Economic sanctions, a tool enabled by dollar dominance, are pushing other countries, particularly in Asia, to actively seek ways to reduce their reliance on the U.S. dollar.
4. While the U.S. has benefited from low interest rates and the ability to borrow heavily due to dollar dominance, the loss of this privilege would have noticeable negative consequences for Americans.
5. Trump's policies, including trade wars, have acted as a catalyst, accelerating the existing trend of countries moving away from the dollar, even though the decline won't happen sharply tomorrow.