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Charles Hugh Smith: The demise of the dollar? Don't hold your breath
9:31a ET Friday, September 22, 2017
Dear Friend of GATA and Gold:
The U.S. dollar is not likely to be displaced as the world reserve currency by another country's currency, financial writer Charles Hugh Smith argues this week, because no other country has an economy large enough to support a reserve currency and the willingness to let its currency trade freely.
Smith does not directly address whether the reserve currency job might be done by a conglomeration of currencies, like the Special Drawing Rights issued by the International Monetary Fund, a conglomeration that some think could be expanded to include gold.
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"Nobody wants to hold a currency that can be devalued overnight by some central authority," Smith writes. "The only security in the realm of currencies is the transparent foreign-exchange market, which is large enough that it's difficult to manipulate for long."
But of course the U.S. dollar has been devalued overnight a few times in the last century, and anyone who believes that the foreign-exchange market is transparent and difficult to manipulate for long might do well to study the operations of the Bank for International Settlements, like the operations detailed here:
In any case Smith's essay is pretty compelling for describing the enormity of the reserve currency business and the dollar's continued domination of it. Smith's essay is headlined "The Demise of the Dollar: Don't Hold Your Breath" and it's posted at his internet site, Of Two Minds, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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