China, who is probably the largest holder of US dollars is going to be pushing to move away from the dollar as the default world reserve currency.
Right now, all nations need to have dollars in their reserves mostly to pay for oil which is denominated in dollars. It was one of the reasons they attacked Iraq - Saddam was moving to get paid in euros. Iran has also talked about this publicly, which is one of the reasons for the bad press.
If this happens, we're talking about bigtime inflation, which may actually mitigate against it, it may not be possible now without huge affects hitting the worldwide economy.
\
Right now, all nations need to have dollars in their reserves mostly to pay for oil which is denominated in dollars. It was one of the reasons they attacked Iraq - Saddam was moving to get paid in euros. Iran has also talked about this publicly, which is one of the reasons for the bad press.
If this happens, we're talking about bigtime inflation, which may actually mitigate against it, it may not be possible now without huge affects hitting the worldwide economy.
\
No comments:
Post a Comment