After a question at my Starbucks Saturday morning coffee buds, several inquiries from you guys in the field a Sunday morning e-mail from my well respected author … then lastly one of our favorites … a one hour podcast Ben Hunt on the Grant Williams podcast on the subject matter … we wanted to summarize some of the items that are occurring around the US dollars reserve currency status.
U.S. dollar Reserve Currency status
Dramatic shift away from the US Dollar is likely very overstated…..
In our opinion much of this conversation can be traced back through the decision of locking down swift codes during the commencement of the most recent war. While an aggressive tactic some peripheral effects may have commenced.
Smaller countries that may be on the edge of friendships with certain nations most certainly took note when certain countries swift codes (prevents from moving money) were shut down barring them from transactions and from their own funds during the most recent conflict. Not surprisingly a protective move to diversify if one found itself in this own situation would be expected.
Ben Hunt Chimes in on the Grant Williams Podcast…
- Both Political Parties can find some power in the Narrative of a US Dollar Reserve issue
- Crypto enthusiasts have a natural bias towards a loss in US Status
- US Dollar is 90% of all transactions
- These comments started 40 years ago and are still not true
US Dollar Chart
International folks understand the dollar itself has not shown much weakness – 20 year chart!
Depending on interest we can do into this in MUCH greater detail in the Newsletter… but until then, thought it worth some clarity!
Have a Great “US Dollar Strength and Longevity” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth