EDITOR'S NOTE: In the video to follow, Fed Chair Jerome Powell carefully sets the tone to deliver what appears to be a dismal forecast for the dollar. He’s right to say that the US benefits from being the issuer of the world’s reserve currency. He’s also right in stating that the world trusts the dollar because of its economic, monetary, and political stability. But what he’s not saying, at least directly, is that “trust” is now in question. However, Powell attempts to allay fears, suggesting that de-dollarization would not impact the US immediately, that it takes a lot of time for it to do so. He even goes so far as to say that it’s possible for the world to have more than one reserve currency. Is Powell hinting that the dollar is about to fail, or that, at the very least, the perception of the “almighty dollar” is fading? Is the dollar finally losing its hegemonic grip over the global monetary ecosystem? If so, then this is just another compelling reason to own gold rather than gamble your wealth prospects on one currency; especially one representing a country whose economic and political environment shows greater potential for strife than success. Think about it: no central bank holds just one currency, and almost all hold a reasonable stash of gold. Doing otherwise would be too risky. So, why should you assume such risk?
Source: CBS News YouTube
Originally posted on CBS News.