US Dollar and US Hegemony - Dissertation Example

For example, in 1995 it was estimated that approximately fifty-nine percent (59%) of the total global currency reserve was made up of the US dollar (Global currency reserve 2013). In 1998, the US dollar constituted approximately sixty-nine percent (69%) of the total global currency reserve, and in 1999 it constituted approximately seventy-one percent (71%) of the total global currency reserve. Global currency reserve (2013) further indicated that in the third quarter of 2012, the US dollar was estimated to constitute an approximately of 62 percent of the global currency reserve.

The composition of the other competing currencies such as the Euro, Japanese Yuan, and Starling Pound are still insignificant when compared to that of the United States dollar (Global currency reserve 2013). For example, the second most commonly used international currency, the Euro, was estimated to constitute 24 percent of the total global currency reserve in the third quarter of 2012 (Global currency reserve 2013). It has been argued by some economists such as Kirshnars (2012) that this constant fall of value and fluctuations of the United States of America dollar in the global market has a serious threat to American hegemony and unipolarity as a whole. . value of the US dollar would deprive United States of America of enjoying the benefits of economic dominance such as the ability to finance its trade-related deficits.

Other than Kirshnars, Clerk is another author who supported the opinion that the United States of America will lose its economic and political hegemony as a whole due to the current pressures and threats. Goldberg (2010) is another economist who supported the above-mentioned argument. Goldberg (2010) explained that the current pressure would affect the international trade and the economy of the United States of America as a whole. Even though the Kirshnars, Goldberg, and Clerk tried to relate the strength of the US dollar with the economic and political dominance of the United States of America, the authors failed to explain how the United States rose to this dominance and factors that contributed towards this dominance.

Also, the authors failed to explain why the economic and political influences of some nations such as China are on the rapid rise regardless of the fact that their currencies remain insignificant in terms of global currency reserve. Due to the above-mentioned weakness, my opinion, as well as an argument, is contrary to those of Kirshner, Clerk, and Goldberg and contrary to the argument that the constant vulnerability and pressure on the U.S. dollar may cause a serious threat to American hegemony and unipolarity as a whole.

In this regard, I am of the view that due to the strength and experience of the United States economy, it will not lose its hegemony as a whole but other contenders may arise such as China and emerging markets. This paper, therefore, aims at supporting the view that due to the strength and experience of the United States economy, it will not lose its hegemony as a whole but other contenders may arise such as China and emerging markets.

In order to support my argument effectively, I will first give a brief overview of the Clerk’s argument. I will then give a brief overview of Kirshnar’s argument as well as a brief overview of Goldberg’s argument. I will then critique the arguments of each of the authors’ opinions by using of arguments of other authors and my opinion.