Billionaire Chamath Palihapitiya believes the US dollar’s supremacy remains unquestionable despite recent headlines featuring the trend of de-dollarization.
In a new episode of the All-In Podcast, Palihapitiya says that the devaluation of the dollar is not all bad news for the United States.
According to the billionaire venture capitalist, a weaker dollar actually boosts the country’s economy as it allows other nations to purchase US products at a discount.
“The position of the US dollar hasn’t changed. Again, you have to remember a lot of these foreign governments, 187 or whatever the number is of countries outside the United States, rely on the US dollar. They don’t want to own their own currency.
Dollars do get inflated, but that increased purchasing power also actually drives the balance of power back to the United States because all of these folks all of a sudden find the ability to import a little bit cheaper, their economies get slightly better but the US dollar actually still does well.
So there’s a complex set of interactions that are all relative.”
Palihapitiya also says that he believes the US government will likely not veer away from the path of long-term currency debasement. According to the billionaire, the best way to ride the trend of long-term dollar debasement is to invest in risk asset such as stocks and crypto.
“We are going to reinflate the money supply over the long term because it’s the only sustainable way that politicians can get elected and re-elected, and I think the best thing to do there is to own risk assets.”
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