World's Largest Asset Manager Warns: The Dollar's Days As Global Reserve Currency Are Numbered
Wednesday, November 7, 2018
The CEO of BlackRock, the world's largest asset-management firm said Tuesday during a panel discussion at the New Economic Forum in Singapore that the US dollar's status as the world's dominant currency wouldn't last forever.
And while it might not happen tomorrow, or next year, over time, as US interest rates rise and the federal government strains under its tremendous debt burden, the creditors who were once eager to buy up Treasury bonds will gradually disappear.
nstead of working with its creditors like China, the US is fighting them by engaging in an acrimonious trade war. Fink said that, in his experience, it's never wise to fight with your lenders.
"Generally, when you fight with your banker, it’s not a good outcome," he said.
"I wouldn’t recommend you fight with your lenders, and we’re fighting with our lenders. Forty percent of the U.S. deficit is funded by external factors. No other country has that."