A World Without A Reserve Currency

No less an authority than Goldman Sachs CEO Lloyd Blankfein said at the Clinton Global Initiative last week that the United States could risk its status as the world’s reserve currency if Congress fails to act and the “fiscal cliff” program of spending cuts and tax increases is enacted January 1. Actually Blankfein’s statement was the reverse of the truth; enaction of the “fiscal cliff” program, halving the U.S. budget deficit at a stroke, is one of the few outcomes that could AVOID the U.S. losing its reserve currency status. But on the assumption that the politicians continue to misbehave after November 6, that trillion-dollar deficits continue, and the U.S. does indeed over time lose its reserve currency status, what will a world without a reserve currency look like?

To read Martin Hutchinson article: A World Without A Reserve Currency

Related articles

• Ron Paul: How Long Will the Dollar Remain the World’s Reserve Currency?

Tagged as: Clinton Global Initiative, Congress, Reserve currency