G-20: World Gangs Up on America
The dollar’s days as reserve currency are numbered.
The richest and most powerful nations descended on South Korea last Thursday. It was the biggest G-20 summit of all time—with nearly 10,000 of the world’s most influential politicians, ceos of international organizations and corporate business barons in attendance. Although several items made it onto the official agenda, the big, all-encompassing issue was what to do about the U.S. dollar.
At the heart of the problem is America, the world’s biggest economy, accused of executing a “beggar thy neighbor” policy to poach trade and boost economic growth. Other nations have adopted America’s strategies too.
Tempers are flaring. The world is up in arms.
The problem is enormous: America’s trade partners can either knuckle under, letting their currencies appreciate and risking severe recession—or they can stage a dollar revolt. This would upend the global economic system.