SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?


To: Kirk © who wrote (4990)8/1/2022 12:50:58 PM
From: Sun Tzu2 Recommendations

Recommended By
Cogito Ergo Sum
Kirk ©

  Read Replies (1) | Respond to of 10768
 
That is an insightful comment. I do believe that the reserve currency of the future is best based on an objective measure of the global GDP and individual currencies will be trade weighted. Using shipping is a close proxy for that.

If I were to make a global reserve currency, I would make it equal to a weighted average of the top 30 futures contracts - including the top 5 or 10 currencies. Importantly, the weightings would be trade weighted. In other words, when you'd sign a contract to build a dam in Indonesia, you don't price it in USD; you price it in the equivalent of 100bbl of oil + 1oz of gold + 1kt of copper + 1000 USD +... This composition will change and the index is rebalanced as the weighted trade changes.

Every country would then have full autonomy to plan their monetary policy and their currency would be measured against that index.