Quote of the Day
All the same, that the dollar’s reign as the world’s dominant currency is drawing to a close is no longer in doubt.
– Jeremy Warner, The Telegraph, The dollar is dead, long live the renminbi
It’s not that bad.
Yet.
The Yuan is heavily tied to China’s ownership of America’s debt. If When the value of the dollar plummets, China will be hard hit, and they own so much of our debt that dumping it hurts them as much (or more) that it would hurt us.
Still, our doubling of the money supply will (must) eventually have an effect, and it won’t be good. And it makes me wonder how much longer oil will be valued in dollars versus another currency, such as the Euro.