May 27 2005
The Dollar Game: Is the Clock Running Out?
While the powers that be acknowledge they are a tad uncomfortable with the deficit and the dollar arrangement, they generally are quite confident in the long-term prospects. Others don’t quite agree…. Bill Bonner is one of them. While Bill can come across as a bit caustic, sometimes a heavy dose of sober cynicism is exactly what carefree revelers need to pull them back to their senses before they plunge off some abyss.
We shall see if Bonner’s dire warnings about the dominance of the dollar come true. But as history guys, we note one truth is undeniable: no currency in existence has stood the test of time except those containing precious metals. For that matter, none has lasted as a reserve currency once no longer backed formally by a bonafide reserve. Of course, such things can take a long time to pan out.
