Brendan Greeley's new book, "The Almighty Dollar: 500 Years of the World's Most Powerful Money," posits that the US dollar is not an American invention but a 500-year-old relic, with its name and foundational concepts predating the United States. He explains that the dollar's origins can be traced to a high-quality silver coin, a "joachimsthaler," minted in the 1520s in what is now Czechia. The term "thaler" or "taler" evolved into "dollar."
Greeley highlights that these early coins, much like the US dollar today, gained value and widespread use not from national backing, but because they were plentiful, predictable, and trusted internationally. Their utility stemmed from their global availability, rather than being tied to a specific kingdom or royal mint. This perspective challenges the common understanding of currency control and origin.
The book also discusses that the dollar, even today, doesn't always serve American interests optimally, despite its global ubiquity. Historically, and even in modern times like the 2008 financial crisis, the dollar's benefits to international commerce have often outweighed its service to average Americans. This reveals a pattern where the dollar's global role can diverge from domestic needs.
Separately, while some analysts suggest the US dollar is the latest in a series of global reserve currencies that will eventually be replaced, others argue this historical premise is flawed. They contend the dollar's current dominance is unprecedented due to the unique role of the US economy in global trade and capital flows. The end of dollar dominance, therefore, would not be a simple currency shift but a transformative and potentially disruptive change to the entire global trading system.
The US dollar was officially established as the national currency by the Continental Congress on July 6, 1785, and a decimal system was adopted. However, a mint wasn't established until 1792, and paper dollar bills as we know them today, including the familiar "greenback," weren't printed until 1862 during the Civil War. Before its official establishment, colonies used a variety of mediums, including English coins, Spanish silver dollars, and even wampum, which was declared legal tender in Massachusetts Bay Colony in 1637.
