China Urges New Money Reserve To Replace The Buck

The dollar bears keep expecting that damn dirty dollar to fall off of a cliff. So far the buck hasn't obliged even if American policy makers are are making a mockery of reason. As we wrote before, here's a dirty little secret - if the dollar is replaced as the world's reserve currency, it will hasten a return to U.S. economic dominance. It will also tank the economies of those most eager to see the dollar go. It is clear the world politicians have no idea what's inside Pandora's box. Be careful what you wish for, often known as Newton's Third Law.

It really doesn't matter how we get to the end state of this cycle anyway. There is only one possible macro outcome. What the reserve currency is won't matter. We'll talk more about this at some point. But, hey replace the dollar. I'd be just fine with such an action.

On a final note, I'm not an attorney but I do believe the U.S. has right of refusal to any changes in the status of the greenback as the world's reserve currency. Unless the world wakes up and decides it will no longer accept dollars, and that isn't going to happen, it will be interesting to see if this political rhetoric gains traction.