"Chief Investment Officer Brad McMillan Debunks Dollar Collapse Fears and Highlights the Strengths of the US Economy"

 

According to Brad McMillan, the Chief

Investment Officer of Commonwealth

Financial Network, fears of a collapse of the

US dollar are unfounded. He believes that the

greenback cannot be replaced anytime soon,

and a lot of the talk about its collapse comes

from doomsayers trying to push gold.

McMillan argued that as long as the US

remains the largest open trading economy,

with everyone in the world wanting access to

it, and as long as it is a great inconvenience to

switch to another currency, the position of

the dollar as the global reserve currency is

secure.

In his view, there are three key factors that

work in favor of the dollar: the size of the US

economy, the freely convertible nature of the

dollar, and the relative political and

economic stability of the US compared to

Europe and China. He believes that when you

look at all the pieces, the US dollar is not only

the established choice and, in most cases, the

smart choice, but it is the only choice, and

there is really no alternative.

McMillan pointed out that even China, which

has been trying to elevate the yuan to

challenge the dollar, still holds more than a

trillion dollars of US assets. He also argued

that de-dollarization concerns have been

rising, but the dollar is not collapsing, and is

trading at about the same level against other

currencies as it has been for the past several

decades.

Some countries have introduced non-dollar

trading arrangements, but McMillan is not

worried about the dollar's ups and downs. He

said, "As far as the markets are concerned,

the dollar is still where it has always been. If

we consider the markets as a warning system,

they are still flashing green. When they start

to turn yellow or red, then will be the time to

worry—but that is not what we are seeing."

Overall, McMillan believes that the US dollar

is not only the established choice, but it is also

the smart choice, and in most cases, it is the

only choice. Therefore, fears that the US

dollar will crash are completely overblown as

the greenback cannot be replaced anytime

soon.