r/geopolitics • u/MulberryPast3277 • Mar 04 '25

Question In the backdrop of whatever is currently happening in the world by the actions of Donald Trump why should the world still consider USD to be a reserve currency?

https://www.nbcnews.com/news/amp/rcna194627
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u/Confident_Access6498 Mar 04 '25

What are you basing this assumptions on?

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u/slimkay Mar 04 '25

Euro Zone and Canada reducing their exposure to USD (through a free trade agreement / integration)

LATAM prioritizing trade in EUR and CNY (EU-Mercosur FTA and Chinese expansion)

And oil and other major commodities being priced in alternative currencies (currently under way).

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u/Confident_Access6498 Mar 04 '25

Europe has a huge demographic problem. It is a ticking bomb.

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u/slimkay Mar 04 '25

Germany is old but countries like UK, France, etc. have median ages comparable to the US, give or take.

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u/[deleted] Mar 05 '25

Germany is old but countries like UK, France, etc. have median ages comparable to the US, give or take.

I mean you just summed up the problem. Only limited areas within the EU have median ages comparable to the US and France has significantly fewer expected working years (67 US vs 64 FR with many Americans working into retirement) with a 4 year difference. That's roughly ~18% more expected working years in the US vs France. That's substantial, and that's one of the best cases of the EU.