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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (5331)	8/30/2022 2:25:39 PM
From: stuffbug	Read Replies (1) \| Respond to of 10601

I understand your logic on settlements, I was considering the reserves held by central banks. Although gold is almost always in the mix, there is a very heavy weighting of U.S. bonds; not only do they act as a reserve asset, they also provide some income. In a basket scenario, it would seem beneficial to own global basket units (GBU - trademarked, lol) However, assuming the weightings are fairly stable, then using conversion factors could suffice. Economic activity could then be normalized quite easily across countries by converting local currencies to GBUs.