The modern capitalist system currently centred around the USD and US treasury bonds has to always expand, short term disruptions not-withstand. Growth is paramount; Growth is absolutely necessary to maintain the empire. The system will die when it exhausted all avenues of expansion, just like the ancient Rome.
The USD hegemony is not a purely economic and financial thing; more importantly, it has international political and military dimensions.
The US has to continue to find the next space to expand into, continue to find the next emerging economic block that will support the USD system by sending surpluses/savings into the USD treasury blackhole. This has been the centre piece for all the major US foreign adventures. The US has been successful for a few decades. The problem is, that as the US empire grows bigger and its elite becomes ever more greedy, it needs bigger and bigger support to stay alive. Competition on equal footings and fair rules can not be tolerated, other economic entities have to continue to feed the USD system upon which the US empire lives like a vampire.
It is now meeting its match on the global arena, it has now come to a point where its brute power can no longer prevail, and its smart power finds no fool to apply to.
Thus it is a forgone conclusion that the USD will fail, sooner rather than later. It is a destiny that the USD can not escape.
Currency wars are about competition for the international trade settlement roles, not the reserve currency role, for the Triffin Dilemma implies that no sovereign currency will want to become international reserve currency, that role is reserved for gold, the only truly global non sovereign money.
Gold's ultimate high will surprise even the most ardent gold bugs.
