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"Demographics, if nothing else, dictate that" the dollar will lose its dominance, says Barry...

"Demographics, if nothing else, dictate that" the dollar will lose its dominance, says Barry Eichengreen in a Q&A on the future of currencies. "It will make no sense for the dollar to be the only true global currency in a world where the U.S. accounts for 15% or 20% at most of real economic activity." (previously)
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Comments (5)
  • Tack
    , contributor
    Comments (14132) | Send Message
     
    But that amount is currently more than the sum total of output China, Germany and Japan...combined. Also, not much talked about, but not to be underestimated, a true global currency also must come from an sovereign entity with an adequate military to ensure its maintenance and survival. Perceived power is just as important as economics.

     

    Now, that the above realities intervene, what does Mr. Eichengreen suggest as the dollar's replacement?
    16 Mar 2011, 05:28 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    He suggests that your response does not matter because he has achieved his goal of seeing his name in print. Be damned the facts.
    16 Mar 2011, 05:45 PM Reply Like
  • cbc
    , contributor
    Comments (411) | Send Message
     
    As so often ( but not always ) you have distilled the peripheral noise into a succinct, well balanced and accurate view. And i will take faith in your numbers because they seem close if possibly exaggerated.

     

    "a true global currency also must come from an sovereign entity with an adequate military to ensure its maintenance and survival."

     

    That is really what it is all about. Debt etc is really not that important, YET.

     

    And your other point. What is the replacement? As shaky as the dollar is what currency is really rock solid? Nothing as of today, we will see what tomorrow may bring. and then see what the next day brings. All markets are one day at a time (or one news flash).
    16 Mar 2011, 11:09 PM Reply Like
  • eggfaced
    , contributor
    Comments (293) | Send Message
     
    Gold is the only true reserve currency that will work...can't print it to oblivion.

     

    Remember, a complete fiat reserve currency is only a 40 year experiment. Gold has been money for thousands of years and fiat money has always failed in every society that has ever tried it.
    17 Mar 2011, 12:16 AM Reply Like
  • cbc
    , contributor
    Comments (411) | Send Message
     
    True but until we rid ourselves of fiat ( great car by the way) heheheh. What currency is the ONE. I think that is the point of the article.
    17 Mar 2011, 12:23 AM Reply Like
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