dtblount

Beware the UN's FX Views

Great article with some excellent views that cut through a lot of the rhetoric...very well done!

As for the UN, I respect and admire its goals (especially those regarding poverty reduction, etc.), but take issue with the attempts at executing many of these goals and the viability of the strategies used. It seems as if the UN has phased into more of a large think tank, capable of conjuring up interesting ideas and hosting elaborate summits with impressive attendees, but lacking in successful projects. I guess that's what happens when you crowd so many academics into a room...

The idea of China lending only in CNY, which is neither a reserve nor a free-floating currency, does not make any sense in this world right now. China needs USD (via USTs since hard currency yields 0%...while USTs are a bit better) almost as badly as the US needs to issue them.

As many issues as there are with USD being the world's reserve currency, it reminds me of the famous Churchill quote regarding Democracy...

"It has been said that Democracy is the worst form of government...except all the others that have been tried."

...change it around a bit...

It has been said that [the USD] is the worst [reserve currency]...except all the others that have been tried.

very true...