Is the US dollar losing its global currency statute?

US Courts are sanctioning foreign banks that use the US dollar in

operations not matching the US policy. Is this political intrusion in the

free use of that currency another bullet in the dollar's own foot?

How will foreign countries with huge dollar reserves react to a biased

currency that cannot be used freely? What currencies will now be used

in financial and commodity transactions, quotations and settlements?

This legal-political intrusion is far from being the only dent in the US dollar

global statute. Can a currency issued unilaterally by a country in its own

interest survive as the currency for most international transactions?

Many countries in other parts of the world claim now that this primacy

builds economic instabilities and distorsions (exchange rates,

trade balances, financial and real assets speculations)

The issue goes further than just an asymetric economic advantage

More crucial is the fact that US budgetary and monetary policies

create most of the time based an excessive mass of dollars.

This overflow of global liquidities explains various recents and ongoing

bubbles and krachs The Gresham law is at work : bad money drives out

the good; as the value of those dollars is doubtful, they circulate full speed

to get rid of them .

What can the US do to reestablish some trust ?

More important, how can the world build a true global monetary system ?

For a trusted global monetary system

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