GLOBAL FUTURE ANALYSIS
CREDIT | GEOPOLITICS
Credit and currency has become more and more a geopolitical issue. The USA is using any mean possible to increase dollar reserves within any currency. This growth will end when this level reaches 100% (more than 100% is not possible), but there yet much reserves to gain for the dollar. The US uses a triple play method: commercial (producing nice figures), political (giving security to ruling powers: Saudi Arabia) and financial (FED/BIS based pushing of both the dollar and US Treasuries). As long there is demand for the dollar and US Treasuries, the US can spend more than they earn. In this light is Iraq, Iran and Venezuela explainable: they has/have active dollar replacement policies in oil trade.
Author: Gijs Graafland
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