The problem with the USD being the world’s reserve currency is that it’s a situation where things could unravel very suddenly. So long as most investors think that the dollar will be OK next week, then it will be a self-fulfilling prophecy. But if people start to worry, then there could be a sudden crash as people head for the exits. Thus the USD system is like a giant commercial bank subject to a run, whenever the public loses confidence.
In that context, it’s interesting to relate three recent news items:
==> ZeroHedge reported on this exchange (in an interview in a French magazine) with Christian Noyer, governor of the French National Bank and member of the ECB’s governing board:
==> The German government recently decided to keep its gold stored in the US after all, but Gary North explains the irony of that decision.
(For the rest of the article, click the link.)