November 21, 2014
This was tipped to me earlier today. It's from the FT, a few weeks ago. Read this carefully – one of the more important OMS notes in a while. This fits in with a theme that Worth and I have been hammering on.
“Rather than crafting new dollar safety nets, efforts need to be directed at treating the cause, not the symptoms. The cause of persistent reliance on dollar liquidity is the fact that there are too few comparable international currencies. Most emerging markets currencies in particular cannot be used in international financial transactions. Dollar dependence is thus critical to allow orderly exchanges and balance of payments adjustments. The high number of relatively large economies unable to use their own currency to conduct international transactions has remained a central weakness of the international economy."