Central Bankers Predict Dollar Losing Reserve Status

I’m sure it’s just a coincidence that the world’s central bankers are predicting that over the next 25 years the United States dollar will lose it’s reserve status.

Financial Times: More than half the managers, who were polled by UBS, predicted that the dollar would be replaced by a portfolio of currencies within the next 25 years.

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The results are the latest sign of dissatisfaction with the dollar as a reserve currency, amid concerns over the US government’s inability to rein in spending and the Federal Reserve’s huge expansion of its balance sheet.

“Right now there is great concern out there around the financial trajectory that the US is on,” said Larry Hatheway, chief economist at UBS.

Read more at the Financial Times

It all kind of ties in when you look at the big picture.

In November of 2010 President Obama went to India and spoke of the decline of America. Recently his pal Bernardine Dohrn gushed that America’s decline provides a tremendous opportunity for progressives. Is it a coincident we’re witnessing the end of America’s dominance?

Now we hear that the Republicans may compromise on defense spending in the debt ceiling debate, while China dramatically ratchets up its own military power. I wonder how much of the interest we’re paying them on our debt  is helping them in that regard. Oh, the sad, sad irony.