The defining event within the inescapable process would be a sudden and sharp dollar crisis, following which would be at least one major central bank standing forward to announce, "this central bank shall cease to play ball w/ the fed". TJ, what means of exchange do you envision replacing the U$ 100 bill for global "under-the-table" transactions? I believe you've already stated that you didn't want China to have the world reserve currency, so I'm curious about what you see replacing the greenback...
These New $100 Bills Are Going to Be Huge Overseas
businessweek.com
Bill Adams, chief economist at PNC Financial (PNC), estimates that from 1992 to 2012, the share of the U.S. gross domestic product accounted for by hundred-dollar bills doubled. Today, he says, hundreds represent close to 6 percent of gross domestic product.
Most of that currency is probably not in the United States. In 2010, Fed Chairman Ben Bernanke noted that up to two-thirds of all hundred notes are circulating abroad.
“The hundred is extremely popular in other countries,” says Tu Packard, a senior economist at Moody’s Analytics (MCO). “In countries that have high inflation, it’s a more trusted medium of exchange.” Where hundreds are concerned, she adds, “the fresher the bill, the better.” Older, beaten-up currency is often frowned upon in countries that have seen their own currency devalued quickly. Packard recalled having an easier time exchanging a hundred-dollar bill in Kyrgyzstan than her travel companion did because her own note appeared newer and less-weathered. |
