French President Nicolas Sarkozy visits the White House today to discuss the global economic situation and other world issues with President Barack Hussein Obama.
At the top of his agenda will be a discussion on alternatives to the US $ as the worlds reserve currency.
“In the absence of a new crisis, there is no incentive for the U.S. to move away from a U.S. dollar-centric system,” Chile’s Finance Minister Felipe Larrain said at a conference in Paris on Jan. 6. “We are in a state of flux in the international monetary system. The problem is that we don’t really have a perfect substitute.”
Larrain also went on to say that a gradual slide away from a reserve use of the US $ is likely in the near future, and used the 10% decline in the dollars share of world central bank reserves in the last decade as a supporting factor.
Some words from the Finance Minister Christine Lagarde;
“Without defending or questioning the role of any specific currency, we can see that new economies have come to the fore during this recent crisis, and yet we have a world which for the time being is a single-currency world,” Lagarde said Jan. 6. “We need reserves that are surer and more stable.”
You can read the Bloomberg report here;
Precious metals are poised for another outstanding year in 2011. The current correction within precious metals should be taken advantage of as an entry point for those that have been sitting on the sidelines.