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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.01+1.6%Nov 12 4:00 PM EST

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To: Chas. who wrote (72404)3/27/2011 6:39:09 AM
From: elmatador   of 217735
 
On the supply side , the menu of international reserves assets should be expanded beyond the USD and a few other currencies: overtime te SDR can and should play a greater role. Likewise, in the coming years, central bankers and sovereign wealth funds may start to hold currencies of te emerging market economies as part of their reserves.

In the short term, this won't threat the role of the USD as the major reserve currency; the USD has no clear alternatives. But if the the United Sates keeps running large twin deficits -or worse, start to monetize its fiscal deficit- the resulting high inflation will accelerate the decline of the USD as a major reserve currency with unpredictable results.
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