Pictorial: Global Reserve Currency Empires
A Comment on Wealth Management
Authored by GoldFix ZH Edit:
Below is each Global Reserve currency and summary circumstances surrounding the downfall of their status as such.
Since 1450 there have been six major world reserve currency periods.
- Portugal (1450–1530)
- Spain (1530–1640)
- Netherlands (1640–1720)
- France (1720–1815)
- Great Britain (1815–1920),
- United States (1921-???)
Demise: Thrived as first explorers, pre-competition; suffered when the Dutch, English, and French got in the colonial and trading game. No clear War event
Demise: Franco-Spanish War starts in 1635, marks beginning of Spain's decline in Western Europe. By 1650-1660 Spain's global empire burdened its economic, resources too much and it shrunk.
Demise: Goes bankrupt Fighting Britain in Asia while Dutch East Indian Company collapses. France expands, takes advantage
Demise: Napoleanic Wars Between France and GB/Allies ends after 18 years in 1815 with Treaty of Paris basically bankrupting France
Great Britain (1815–1920)
World War 1 ends. GB "wins"
United States (1921-2025?)
The return to multipolarity gains acceptance along with Gold and Silver as monetary metals.
All powers involved want some degree of change without global war it seems based on actions and reactions.
Similarities between the US and Spanish situation are notable but not 100% the same.
Spain ran large, persistent trade deficits
Spain didn’t accommodate foreign imbalances so much as create them, to the benefit especially of England and the Netherlands.
“However it happens, a world in which trade isn’t structured around the dollar will require a massive transformation of the structure of global trade — and for surplus countries like Brazil, Germany, Saudi Arabia, and China, this is likely to be a very disruptive transformation.”
Age of Empires. Global reserve currency edition. pic.twitter.com/UB5dzHx3ne— VBL’s Ghost (@Sorenthek) November 18, 2023
In studying the above info two things jump out when attempting to determine the circumstances under which reserve currencies change. Economic Strife and War
Economic Strife and War
The first is Economic Strife. This seems pretty obvious since we are talking about money. If your economy is struggling, your currency’s reliability and its existence are put in doubt somewhat.