Friday, 10 April 2009

US Dollar replacement unlikely to emerge through calm deliberation

My guess is that the SDR (or any surrogate instrument) will not replace the US Dollar as a result of calm deliberation - it will take another phase of the global debt crisis.

Only when policy makers are staring at the precipice again and realizing that the game is up will they come up with a new global unit of account and store of wealth - as before it will probably happen over a weekend with an announcement late Sunday before Tokyo opens.

On second thoughts it might be announced in Shanghai early Monday before New York opens.

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