The times, they are a-changin’, as Bob Dylan tells us.
On the global economic stage, the U.S. isn’t the dominant economic superpower that it once was. This conclusion comes from the declining popularity of dollars among global central banks.
Around the world, national central banks stockpile “reserves” in order to back up the value of their own national currency. Here’s how Investopedia explains monetary reserves:
- The currency, precious metals, and other assets held by a central bank or other monetary authority
- Monetary reserves back up the value of national currencies by providing something of value that the currency can be exchanged or redeemed for by note holders and depositors
- Reserves themselves can either be gold or denominated in a specific currency, such as the dollar or euro
In a sense, holding any asset as part of a nation’s monetary reserves is a vote of confidence in it (which is a big reason central banks own tons of gold bars).
Continue reading “Central Banks Rush to Protect Themselves from Incoming Disaster”
