HYPERINFLATION OF THE RESERVE CURRENCY
DECEMBER 5, 2013
Slowly, the status of the dollar as reserve currency is slipping away, threatening hyperinflation.
The recent rise in interest rates, in response to the threat of Fed tapering, foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort – the US Treasury.
That all fiat currencies end the same is no secret.
Reserve currencies are not immune. Slowly, the status of the dollar as reserve currency is slipping away.
Rumblings of a re-arranging of trade status are approaching a feverish pitch.