Maniac in Motion

Morgan Stanley: Maintaining the USD's Reserve Currency Status

Not only will another country or a currency area need to significantly surpass the US, both economically and financially, we believe that the US will need to make some serious policy mistakes for it to relinquish the dollar’s lead.

The US only 10 years ago accounted for 30% of global GDP. We now only represent 12%, losing GDP share to China. In only 10 years. And at a time, when we're facing inlationary pressures, the Fed further cuts the rate? By 225+ bps? How dire do the mistakes need to be?

Foreign central banks are already paring down their US reserves for gold. Meanwhile, both Russia and India are months away from opening domestic commodity exchanges, further decentralizing commodity prices.

What else do we need to hear until we understand the US is no longer #1 by a landslide?