Dollar Reserve Currency Status at Risk: Dimon's Warning

JPMorgan Chase CEO Jamie Dimon warned that the US dollar could lose its status as the world's reserve currency if America fails to maintain its economic and military dominance. The dollar currently accounts for about 57% of global foreign-exchange reserves, down from around 70% at the turn of the century.

Dimon emphasized that maintaining America's edge also means reducing dependence on potential adversaries for strategically important goods. He pointed to China as an example, stating that the US should have recognized 10 or 15 years ago its reliance on China for rare earths, aluminum, and other equipment.

The JPMorgan CEO also highlighted another vulnerability: America's ability to sustain a prolonged war. The war in Iran has shown that the US lacks productive capability to defend itself in a real war lasting for an extended period.