GOLD 0.51% $1,391.7 gold futures

usa battle to keep world's reserve currency .., page-2

  1. 1,498 Posts.
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    "...There is nothing the US will stop at to ensure that the dollar is the world’s safe haven and reserve currency."

    They've stopped at the invasion of Syria. No point taking even a mighty Nimitz carrier into the Persian gulf when there are Sunburn, or even Onyx, missile launchers that can be hidden in any of a hundred in-range locations. So the times they could be a-changin' for the petrodollar (and for dollarisation generally, given the recent alienation of emerging economies). Just because an alternative reserve currency may not be viable yet doesn't mean that people can't ditch the dollar in favour of other currencies or hard assets.

    Apart from that, banks that know that they are too big to fail or jail are bound to pile up more risk over currencies.

    Lastly, inflation needn't just arise from greed and overconfidence - it can also be driven by fear. Buyers obviously may buy in order to obtain goods, but they could equally do it to get rid of currency. Either way prices rise - including that of gold. It just takes a change in mindset, and there are drivers for that building on several fronts.
 
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