Iran War Is Causing Lasting Damage to Dollar System

While the dollar's demise has been greatly exaggerated on many occasions, the war with Iran has put potentially irreversible strain on the global trading system, with gold reserves having eclipsed central bank holdings of valuation-adjusted dollar assets for the first time in the Bretton Woods II era. As President Trump rips up Pax Americana, owning fewer dollar assets becomes increasingly logical, and it’s hard not to see the dollar’s dominance continuing to ebb away over time, with gold’s fortunes further revived.