[quote=pri_dk][quote=Rich Toscano]Again, people will find another option.[/quote]
Not if there are no other options.
And there really are no alternatives to the dollar. [/quote]
The alternative is to not use the dollar as the single reserve currency. Like I said, countries are setting up bilateral trade agreements to avoid the dollar and use their own currencies. Some regions could also migrate over to the yuan (maybe not ready yet, but eventually) or the euro (you may laugh now, but some day the problems will shake out and there could be a stable euro).
[quote=pri_dk]
Since the world cannot avoid currency altogether, investors will stay with least risky currency (by a long-shot): The US Dollar[/quote]
I don’t see the dollar as being least risky. This is my whole psychology argument: the only reason it’s seen as safe is that the herd still thinks it’s safe. Once that’s questioned, the fundamental riskiness will become clear.
As Nassim Taleb said: ““The difference between Europe and the U.S. is the consciousness of the problem.”
Guys, this is a fun conversation (and I appreciate everyone except DomoArigato keeping it so civil). But, I am moving today so probably won’t have time to punch into this thread much after this… go on without me. 🙂
