Just that all these wonderful potential reserve currencies will also fail soon.
And the solution will be a new world (order) currency.
Jim Rickards: Senior Managing Director for Market Intelligence at Omnis, Inc. – Jim has been a direct participant in many of the most significant financial events over the past 30 years including the 1981 release of hostages from Iran and was also the principal negotiator for the government sponsored bailout of LTCM. His clients include private investment funds, investment banks and government directorates in national security and defense. He is an advisor to the Committee on Foreign Investment in the United States and Support Group of the Director of National Intelligence and recently testified before Congress on the causes of the financial crisis. Follow Jim Rickards on Twitter at twitter.com/JamesGRickards
With events at Davos taking place, King World News interviewed Jim Rickards of Omnis to get his take on what is happening.
When asked about discussions regarding the dollar Rickards remarked, “We’ve talked a lot about a gold standard, we’ve talked about SDR’s.
It’s obvious that the international monetary system is breaking down. Nobody’s happy with the dollar, but nobody can quite figure out what the alternative is so they sort of get forced into staying with the dollar…and we keep printing more.”
Rickards continues:
“So there is a search for an alternative and again I’ve identified gold and SDR’s as two alternatives. The third path that I’ve talked about is just chaos…People put off decisions or don’t come up with a good alternative for too long and things just kind of break down.
There is a new entry if you think of this as a horse race. You know I had three horses in the race, gold, SDR’s and chaos. There’s a fourth horse that has entered the race. I think the main advocate for this is Professor Barry Eichengreen of University of California Berkley. He is a leading intellectual student and author on the gold exchange of the 1920’s. So at least in academic circles when you talk about the failure of the gold exchange standard in the ’20’s and 30’s all eyes point to Barry Eichengreen, he’s the leading scholar in that area.
What he is saying and what a lot of people in Davos are talking about is this idea of multiple reserve currencies. Right now the dollar is far and away number one. There are other reserve currencies, stirling, yen, Swiss francs and of course the Euro all play a roll, but the US dollar is between 65% or so, somewhere in that range of all reserves held around the world, not counting gold.
The idea is that it doesn’t have to be a world where the dollar dominates or the dollar goes to zero…But you could have a world where you have maybe four reserve currencies and they all have maybe 25 or 30% of the action, give or take…Something like that did exist in the 1920’s where the dollar and the stirling were side by side, neither one totally dominated…so it’s a plausible hypothesis.
…..
(Infinite: No this is not a plausible hypothesis. If you take dollar confetti and replace it with with a dollar, euro, yen, pound and yuan confetti mixture, then it is still worthless confetti.)
Full article here: King World News