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US Dollar's Status As Dominant "Global Reserve Currency" Drops To 25-Year Low

serfserf Member Posts: 9,217 ✭✭✭✭

Yep and when they lose their military edge in battle it will really get bad for us here in The USA. The silver lining in a dark cloud will be less illegals pouring in for sanctuary and free welfare.

serf

https://www.zerohedge.com/geopolitical/us-dollars-status-dominant-global-reserve-currency-drops-25-year-low

Not included in global foreign exchange reserves are the Fed’s own holdings of dollar-denominated assets, its $4.9 trillion in Treasury securities and $2.2 trillion in mortgage-backed securities, that it amassed as part of its QE.

The US dollar’s status as the dominant global reserve currency is a crucial enabler for the US government to keep ballooning its public debt, and for Corporate America’s relentless efforts to create the vast trade deficits by offshoring production to cheap countries, most prominently China and Mexico. They’re all counting on the willingness of other central banks to hold large amounts of dollar-denominated debt.

But it seems, central banks have been getting just a tad nervous and want to diversify their holdings – but ever so slowly, and not all of a sudden, given the magnitude of this thing, which, if mishandled, could blow over everyone’s house of cards.

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