Yes, so far the US has used, but not abused, it’s position as holder of the world’s reserve currency.
If that change, which it has shown tendency to do lately, then other currencies will take it’s place. But it will be more than one single currency by “popular demand”.
The Euro, Renminbi, Yen and Swiss Francs are likely candidates.
Decades ago, some political dreamers begun to dream about this…
A globally accepted reserve currency needs not only to have a generally accepted country name; it needs a big liquidity to trade, a free trade of this liquidity, a persistent history of this and an absence of voluntary and arbitrary market interventions.
Japan was never willing to accept this; the Swiss have enough to do with battling against the reevaluation of their currency, which would be far to small to guarantee a liquid market; the Renminbi is decades away from being out of arbitral manipulations; the politics of the Euro-countries are just a disaster…
The world majority does not like the US-Dollar, at least in numbers, but what could they do? They can hold their reserves in shell money of a far away Pacific island… and hope to sell their shells in an emergency…
What may be helpiing USA is the all time low rates. It not only helps the buyers for real estate, or stock buyers on margin, but the USA paying the notes on their increasing debt. Every percent the rate goes up, the more trouble the treasury faces. I may be wrong, as often as that occurs, rates will have to remain low to dig us out of the debt we have created. We cannot print our way out of this.
Not one alone but at least three of the above currencies simultaneously.
Maybe Bitcoin, or some future electronic “money” will fill the role that SDR did not manage to do?
And which of the three countries would guarantee the seriousness of all three?
Not 3 countries, the Euro Zone consist of 19 countries and is backed by ECB.
Together with China and Japan they constitute a large part of the world economy and the majority of manufacturing export.
Sterling ruled supreme for many decades as the “world currency”, but would not even be considered as a candidate for that role today.
I could never grasp the idea of Bitcoin. I believe in the " KISS" concept at work and investing. Keep it simple stupid. It sounds like imaginary money that you can lose by one inadvertent key swipe. Bad enough my mattress is not full of cash, but my accounts are electronic and subject to the same fate. The brokers tell me I am fine, but am I really? How about I call them one day and say “Liquidate all my accounts and send me cold,hard cash” I believe an upper level manager would give me a call rather quickly to convince me otherwise. But for shit’s and giggles, would like to do that one day.
There is an old saying that “if you owe the bank a few thousand and default YOU have a problem, but if you owe a few mill. the BANK has a problem”.
I have never thought of it, or been in the situation of having a few mill. $ in the bank and threatening to withdraw the, but I presume the same applies.
Good on you, but do you have a big enough mattress to hold it all??
Bug, your knowledge and humor always impresses me. That old saying you mentioned is to the point. Keep up what you are doing contributing to this site. I don’t always agree with you, but a fan nonetheless. My King size mattress is full of foam and springs and a nice lady that tolerates me. Probably will never make that phone call, but it would be a hoot if I did.!
I never mentioned American shipyards, so I’m not sure why you went of on that tangent about no foreign currency.
Perhaps I should have said the rest of the world and not American shipyards
bitcoin is not money as it doesnt pay interest hence has no value but what gamblers are willing to pay for it like sea shells
At my young age LOL, will stay with things my feeble mind understands. Has worked so far. Bitcoin just ain’t in the picture. Steady and slow has always been the best path. Aesop reminds us of the turtle beating the hare. Guy had some cool story’s we should pay attention to.
you have to think of the history of the government behind the currency and do you trust them.
Thats rules out lots.
Lots of so called ‘Bitcoin experts’ don’t really understand what bitcoin is either.
They just throw around fancy words like decentralize, democratize and block-chain then hope people are confused enough to think they actually know what they’re talking about.
can you imagine global trade settled via bitcoin price then overnight it halves
The idea behind bitcoin, blockchain, is good and blockchain has many uses. But a currency has to have something backing it up. The USD has the backing of the US government just as the pound sterling has the backing of the UK, the Yen Japan etc. If the currency becomes worthless those holding it could take over the dead beat country I suppose. But there is no intrinsic value to bitcoin that I can determine. A LOT of money was made by those who bought into bitcoin before the pyramid got so steep. Like Amway, DotCom bubble, LTCM failure and others before Bitcoin has produced some really good BS artists that can move on to investment bank positions or politics once the shine comes off.
What country does actually back bitcoin and with what assets?
That’s the one trillion dollar question. Actually the bitcoin uses as a selling point that no country backs it.
All the more reason to stay away. I have seen some offshore purchases made in partial with Bitcoin, they are shady purchases on their own. Just sticking with the people/stocks that have to pay their bills monthly. Although it hasn’t affected me, this not paying the landlords and electric bills giveaway is appalling. Although sympathetic this virus shit is out of control, We have bills to pay as well. Contrary to popular belief/or disbelief, oil is not going away. It is neccessary in every facet of the economy. Price sucks right now, as it has in the past in cycles we are all aware of. But it isn’t on the death bed. The drillers are still drilling, the frackers are fracking. The overextended players are getting their due. No sympathy here.
There’s no country backing it up. There are no assets.