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Lawrence E. Fischer

Financial  -  Blog

THE END OF THE US DOLLAR AS THE WORLD’S RESERVE CURRENCY?

 

In late October of 2015, the International Monetary Fund (IMF) is scheduled to meet to determine, among other matters, if the US dollar will remain as the global reserve currency preferred in international trade. Several scholars and financial gurus have opined that this decision, if it does occur, may usher in a drastic devaluation of the US dollar.

 

James Rickards in his book “The Death of Money” (Portfolio/Penguin Publishers 2014) details the demise of the dollar. Rickards spent years working as one of the CIA’s most trusted financial experts analyzing international trade, terrorist related hacking and manipulation of the world’s financial markets. After reading this book, I wonder where our investments can be safe for future retirement.

 

My good friend and financial colleague, Steve Johnson of Ashton Royce in Williamsburg, Virginia, suggests there is no currency or “bucket” of multiple currencies that the IMF can use which may be stronger or safer than the US dollar. His viewpoint suggests if there is a financial collapse in the US, it won’t be due to the dollar being exchanged for other currencies as the global reserve currencies.

 

Look to see what the IMF decides to do at its October 2015 meeting.

 

Food for thought.


September 24, 2015