The results are the latest sign of dissatisfaction with the dollar as a reserve currency, amid concerns over the US government’s inability to rein in spending and the Federal Reserve’s huge expansion of its balance sheet.
“Right now there is great concern out there around the financial trajectory that the US is on,” said Larry Hatheway, chief economist at UBS.
The US currency has slid 5 per cent so far this year, and is trading close to its lowest ever level against a basket of the world’s major currencies.
If we lose reserve status, that means we can no longer print dollars for to pay our debts to foreign nations, or to buy oil on the world markets. We would have to back up our desires with real, not imaginary, currency. And immediately, we would see financial disaster, as inflation would skyrocket practically overnight.
How many other countries get to buy oil with money they can print in the basement, do you think? Answer: none. Only the country with the reserve status gets to do that, and 'get away' with it.
Which means, soon enough, a world of hurt for our domestic policies which rely on imaginary currency and debt loads shifted to future generations.
Sorry, Democrats, but there's always been a timetable limit for your 'nirvana on earth' cradle-to-grave dirty socialists desires; the limits are becoming ever-more visible and concrete as time passes.
Tick, tock, tick...tock.
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