What Is an SDR and Will It Be the Next World Reserve Currency?
thegoldobserver.substack.com
There’s no way IMF’s Special Drawing Rights, a poorly designed synthetic reserve asset, will replace the U.S. dollar as the world reserve currency. Written by Jan Nieuwenhuijs, originally published at Voima Gold Insight. After several years of monetary madness—artificially lowering interest rates to the extent all asset prices are distorted—the world is slowly waking up to the fact that printing money by central banks is a one-way street. Once central banks enter this trajectory (and they have), they can’t reverse. Markets have become addicted to cheap money, and central banks feel compelled to print more when the economy, or stock market, weakens. The Federal Reserve, the issuer of the U.S. dollar, is trapped too. Possibly, a
What Is an SDR and Will It Be the Next World Reserve Currency?
What Is an SDR and Will It Be the Next World…
What Is an SDR and Will It Be the Next World Reserve Currency?
There’s no way IMF’s Special Drawing Rights, a poorly designed synthetic reserve asset, will replace the U.S. dollar as the world reserve currency. Written by Jan Nieuwenhuijs, originally published at Voima Gold Insight. After several years of monetary madness—artificially lowering interest rates to the extent all asset prices are distorted—the world is slowly waking up to the fact that printing money by central banks is a one-way street. Once central banks enter this trajectory (and they have), they can’t reverse. Markets have become addicted to cheap money, and central banks feel compelled to print more when the economy, or stock market, weakens. The Federal Reserve, the issuer of the U.S. dollar, is trapped too. Possibly, a