The Economic End Game Continues

Raj174

http://www.zerohedge.com/news/2017-11-03/economic-end-game-continues

Estragon

In 1988, a world currency was an interesting theoretical concept. Currency risk is a deadweight frictional cost, and barrier to trade. Emerging economies in particular are vulnerable to currency swings, especially if they have significant foreign currency debt. The IMF is regularly called upon to deal with the resulting messes.

Since that time though, we have the nearly 20 years of experince with the Euro. It's now clear that a world currency is highly unlikely. I wouldn't put the odds of even the Euro surviving long term in its current form at better than 50/50. Any sort of world currency is completely off the table IMHO.

Blockchain is a red herring. It'll probably be used, but for reasons other than a world currency. The banks like it because it could potentially cut costs dramatically. The gov'ts will want to use it to reduce money laundering and tax evasion. It will be national currencies, not bitcoin or a world currency.

The petrocurrency angle is also a red herring, a bit of a relic from when the US was heavily reliant on mid-east oil.