Back in 1985, the claim that the dollar would crash exist but the theory was that the US would go to a two-tier monetary system. They would make the Eurodollars a separate currency like South Africa had the domestic rand and the financial rand for international commerce. The cash deposits were shifting from external Eurodollars to domestic accounts convinced that to get out of the debt crisis, they would default on external Eurodollars.
Even going back to the 14th century, the city of Florence had a two-tier monetary system where gold was used for international trade and silver was used for domestic transactions including wages.
I explained to our European clients at the time that I might be the only American to even understand their theory about defaulting on Eurodollars thereby making the greenback more valuable.
The US did have a two-tier partial system driven by the fact that China had a different weight standard. Thus, there was the domestic silver dollar with 0.7734 n trou ounces and the Trade Dollars with 0.7875 trou ounces.
For nearly 60 years, all I have heard was how the dollar’s days were numbered and it was going to crash any day now. They even said that Bitcoin would replace the dollar as the reserve currency. The dollar haters will never relent.
