Will “Sell America” End the Dollar’s Hegemony? Mutual assured destruction (MAD)

A question is whether current holders of US debt would be willing or even able to bear the costs of selling it, given the logic of mutual assured destruction (MAD). 

If de-dollarizing governments were to coordinate a mass sale of US Treasuries and other assets, the damage to their own central banks and private financial institutions’ balance sheets would be twofold. 

A mass sale of dollar assets would drive down their price, forcing banks to take a hit; and their remaining dollar assets would also fall sharply in value.

Moreover the euro to appreciate sharply, damaging eurozone member states’ substantial export sectors. 

Erin Lockwood Project Syndicate Feb 9, 2026

https://www.project-syndicate.org/commentary/sell-america-future-of-dollar-hegemony-by-erin-lockwood-2026-02


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