Tuesday, September 13, 2016

Is October 1st D Day for the US Dollar?

Hi Folks,

Are the days of King Dollar coming to an end?  On October 1st, the IMF is adding the Chinese renminbi to the SDR Basket.  So what right?  Well with the recent talks at the G20 summit about the need for a replacement of the dollar as the world's reserve currency, it seems likely that the stage is being set for the SDR to take it's place.

The US has enjoyed huge perks for decades while having the power of the world's reserve currency.  When that goes away it will have huge impacts on our multinational companies as well as the dollar itself.  If the SDR does replace the Dollar, who will buy our debt?

I'm not ringing the alarm bell yet but we could be seeing the beginning of the end for the dollar.

Thanks and Good Trading,