Despite international pressure, Iran appears to be continuing its march toward getting a nuclear bomb. But Washington can contain and mitigate the consequences of Tehran's nuclear defiance, keeping an abhorrent outcome from becoming a catastrophic one.
User Comments
In the long run by 2025 Euro
In the long run by 2025 Euro and Renminbi may join Dollar as reserve currency. But for that to happen China will have to go for full capital convertability and euro area expands to cover all EU countries.
Dollar
There is much talk right now about how there are countries who are taking steps to eliminate the dollar. If this happens then nobody really knows how Americans will cope or what we will use for currency.
Replacing US$, Not a Chance!
Unless China and Russia can convince the rest of the world that their government are open and just, there is not a chance that the business communities would participate in this silly suggestion! What ever happen to the once riches citizens of Russia and China. They are all in jail and their companies nationalized!!! Furthermore, have anyone ever try to reason with these two countries?
The Dollar Dilemma
I am not sure that the status of the dollar as an international currency is the issue here. It is the fact that the dollar is the reserve currency of the world. This forces central banks to hold more dollars than might otherwise be necessary , that is, these excess dollars maynot be converted into domestic currency but held as "emergency funds". That is why the Chinese and OPEC buy T-Notes to park these funds under the Treasury mattress. This helps all concerned when things are stable. But if American inflation becomes a threat and if its deficits result in the printing of more paper money, this happy equilibrium starts to break down.