Peter Zeihan: The U.S. Runs The Least Bad Ship When It Comes To Global Currencies


Geopolitical strategist Peter Zeihan talks about the concerns over dedollarization. Zeihan states that there are three factors for a global currency and why the United States dollar is the only currency right now to have all three:


"#1 Size - To be a currency of exchange, trade, and reserve, a currency must exist in a massive volume. Only four currencies meet the size requirement: Dollar, Euro, Yen and Yuan.


#2 Access - You need to be able to get ahold of a (nearly) unlimited supply of said currency at the drop of a hat. The Dollar comes out on top in this category, with the Yen and Yuan unable to provide the necessary level of access.


#3 Trust - You must feel secure that the chosen currency is a safe store of value and that the government will not intervene. This makes the currency a subset of trade, and if the country in charge wants to micromanage the value on a daily basis, it won't work." 

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