"Washington’s weaponizing of the dollar over the past decade has led many important countries to search for ways to make sure that they do not become the next Russia. The share of dollars in global central bank reserves has dropped from roughly 70 percent 20 years ago to less than 60 percent today, and falling steadily. The Europeans and the Chinese are trying to build international payment systems outside of the dollar-dominated SWIFT system. Saudi Arabia has flirted with the idea of pricing its oil in yuan. India is settling most of its oil purchases from Russia in nondollar currencies. Digital currencies, which are being explored by most nations, might be another alternative; in fact, China’s central bank has createdone. All of these alternatives add costs, but the past few years should have taught us that nations are increasingly willing to pay a price for achieving political goals."
"America’s politicians have gotten used to spending seemingly without any concerns about deficits — public debt has risen almost fivefold from roughly $6.5 trillion 20 years ago to $31.5 trillion today. The Fed has solved a series of financial crashes by massively expanding its balance sheettwelvefold, from around $730 billion 20 years ago to about $8.7 trillion today. All of this only works because of the dollar’s unique status. If that wanes, America will face a reckoning like none before."