The end of the dollar’s exorbitant privilege
A crash is likely given the collapse in US domestic saving and a gaping current account deficit. "The riddle once posed in the 1960s by former French finance minister (eventually president) Valéry Giscard d’Estaing is about to be solved. Giscard bemoaned a US that took advantage of its privileged position as the world’s dominant reserve currency and drew freely on the rest of the world to support its over-extended standard of living. That privilege is about to be withdrawn. A crash in the dollar is likely and it could fall by as much as 35 per cent by the end of 2021." Stephen Roach explains in the Financial Times.
From Financial Times