1. There will be a world currency; countries will no longer be able to print their way out of economic problems at the expense of others. Every attempt will be made to make this world currency more stable than the dollar.
or…
2. Several world currencies will emerge; that may be happening right now.
Either way, the dollar at some point will no longer be the dominant reserve currency.
RICHMOND, Va. (Dow Jones)–Federal Reserve Bank of Richmond President Jeffrey Lacker Friday said the U.S. dollar would likely retain its position as an international reserve currency.
January 14, 2011:
RICHMOND, Va. (Dow Jones)–Federal Reserve Bank of Richmond President Jeffrey Lacker Friday said the U.S. dollar would likely retain its position as an international reserve currency.
“I’m fairly optimistic that we are going to retain a fairly strong position as an international reserve currency,” he said at a Risk Management Association event. “If that were to erode–if our share of the international reserve currency market were to erode–I don’t think it would cause any material problem for us.”
