Quote: (12-28-2014 04:36 PM)rudebwoy Wrote:
I am not a doomsday believer, life will go on as always.
If you seriously think the dollar will be around in 40 years then I got a bridge to sell you.
The dollar probably won't be around (or at least a reserve currency) in 40 years, but it is hard to see the dollar losing its place in the monetary system in the near future (next 10 years).
The main reason is there is currently no alternative to the dollar other than going back to a gold-backed monetary system which no central bank in the world wants.
A lot of people talk about the Chinese Yuan being the next reserve currency. However, this leaves out that the Yuan doesn't have the bond market necessary to become a reserve currency yet. You realistically need a deep pool of liquidity in various maturities (from one month to 30 years) along with investor protections to have a real shot at being a reserve currency.
China is not there yet and won't be there for at least 10 years (if not more).
Thus, that leaves the dollar, flawed as it is, as the only real reserve currency for now.