In this heightened era of government tax and spend -- where printing more money is the Fed's only solution -- even our allies are sprinting from the dollar. Nations like Russia and Japan could be turning to the gold standard, and the U.S. is none too pleased.
Think this out. The value of a currency is, by definitions, it's ratio to other currency. If the dollar is the worlds only reserve currency. If it crashes every other currency goes with it, so the ratio doesn't change, at least not dramatically.
ReplyDeleteIf this kind of event were to happen it would only last long enough for markets to adjust, basically somewhere between a day and a week.