Uploaded July 2020 | Updated September 2026, 25 minutes ago
It is impossible to follow financial media outlets without coming across two very vocal sides: on the one hand, those who believe a US dollar crisis is just around the corner and on the other hand, those who claim the exact opposite, that the dollar is likely to actually appreciate after even a crisis that had its origins in the United States.
The dollar strength side tends to be correct if we limit ourselves to analyzing recent history because indeed, the previous financial crisis (the Great Recession) made it clear that as far as today's monetary and financial status quo is concerned, even calamities which started in the United States (such as the Mortgage-Backed Security debacle) tend to lead to dollar strength as a result of the fast that frightened market participants see the dominant US dollar as a safe haven solution.
If we take several steps back through and dust off a few economic history books however, we cannot help but notice that as far as the long-term outlook is concerned, the US dollar crisis narrative does have its merits or in other words, let's just say it would be unwise to assume that the dominance of the US dollar is a given, a "new paradigm" that will stick around forever.
It is impossible to follow financial media outlets without coming across two very vocal sides: on the one hand, those who believe a US dollar crisis is just around the corner and on the other hand, those who claim the exact opposite, that the dollar is likely to actually appreciate after even a crisis that had its origins in the United States.
The dollar strength side tends to be correct if we limit ourselves to analyzing recent history because indeed, the previous financial crisis (the Great Recession) made it clear that as far as today's monetary and financial status quo is concerned, even calamities which started in the United States (such as the Mortgage-Backed Security debacle) tend to lead to dollar strength as a result of the fast that frightened market participants see the dominant US dollar as a safe haven solution.
If we take several steps back through and dust off a few economic history books however, we cannot help but notice that as far as the long-term outlook is concerned, the US dollar crisis narrative does have its merits or in other words, let's just say it would be unwise to assume that the dominance of the US dollar is a given, a "new paradigm" that will stick around forever.
