Bob Koure
2 min readJun 20, 2022

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And your proposal for a global reserve currency is?

From the 'technocratic futurist' in your bio I'd guess you'd propose one of the cyber currencies. Back before there was such a thing, I would have agreed with you, expecting that they'd be actual currencies - but they seem to have turned completely into speculative instruments.

On the other hand, as fiat currencies go, the US is a reasonable bet. Productive farmland, good transportation. Plenty of oil/gas. Good relations with the countries it shares land borders with. A bit of a demographic hiccup coming in the 20s due to Boomers retiring so there'll be labor and capital shortages. But thanks to NAFTA it has access to Mexican workers (both as immigrants and as workers in Mexican factories). It has the most capable blue water navy on the planet by a factor of 8 or 10 — absurdly over-capable, until you consider that it’s for the Bretton Woods Accords (AKA globalism). The US has no real need for that now (last lingering bit was dependence on Middle East oil, but that’s over — as are days of OPEC deciding what the US pays for fuel. No idea how long the US will continue this support, but as it withdraws more of the money currently spent on it stays in the US — and the rest of the world becomes less competitive.

Another possibility is Chinese yuan — but I wouldn’t bet on it. Have a look at McMahon’s “China’s Great Wall of Debt” for why not. The ruble? And be in the same position the Germans are now with gas? The rupee has also been proposed. Dunno about Indian fundamentals. They are nominally food-sufficient but still have an issue with under-5 ‘stunting’ — which I take to be signs of food insufficiency. They have no petro but are in a position to take what they want (or levy a transit fee) on everything exiting the Persian Gulf — once the US navy is diminished or gone.

Or are we talking about going back to a gold standard here? You might read Ahamed’s “Lords of Finance” for why that’s a less than excellent idea.

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Bob Koure
Bob Koure

Written by Bob Koure

Retired software architect, statistical analyst, hotel mgr, bike racer, distance swimmer. Photographer. Amateur historian. Avid reader. Home cook. Never-FBer

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