having a current account deficit isn’t inherently bad. with the way trade works some countries must have surplus and others deficit (it must all add up to zero), but U.S. having control over the dollar gives it special powers to basically not have to worry about trade balance since it can create dollars as needed and as U.S. is the ‘home’ of capitalism, investors consider it a ‘safe haven’.
And that’s precisely what’s under threat with the whole dedollarization business that’s accelerating.
The IMF has accepted the first debt payment in Yuan. There have been plenty of currency swaps between BRICS countries and others to help them trade without the US Dollar. The Dollar is losing its seat as the currency of international trade. Thus the US can no longer be the imperialist hegemon.
