On this chart, what you can see is the extent to which people between 1995 and
2015 Prefer different kinds of currencies in the world.
Here we are talking about governments, because governments holds,
if you remember surpluses.
So, the world extend governments in the world are relying on the US Dollar
versus the Euro versus the Swiss Franc, or
the French Franc, or Pound Sterling to keep their surpluses.
And as you can see, the Dollar continues to be the preferred currency in the world,
the Euro is the number two.
Notice that since the beginning of the European, that rises in 2009,
preference for the Euro has been declining, and pressure for
the US dollar has been on the increase.
But my point of showing you this chart Is that, it is or
there is a currency that is obviously missing from it, and
yet we know that it is a very large and influential economy and
that's China and the Renminbi the currency that the Chinese government issues.
Where is it on this chart?
Well, obviously it is not on the chart And the reason for
that is that people have very little trust in it.
It's a currency that is just purely a domestic currency that can be used in
China, right?
When the rest of the owners of New York lost their trust in the lease money or
form of money, which was is own drawings, right?
As they were losing value,
because he was printing many of them Then they went back to the US dollars.
They deposited their checks.
So my prediction about what is going to be about this interplay between
the currencies of the two largest economies right now in the world,
the US and China, is that the dollar will continue to play a preeminent role, and
not the Renminbi for as long as countries, governments, individuals,
companies in the world continue to have trust in the US dollar.
Now remember, of course, per the Dali story, the issue with a lower,
in the long run, is that we will continue here in this country to
print a lot of dollars because we have a deficit.