Which blocs/nations are most likely to face banking/liquidity crises in the next year?
Hating the U.S. dollar offers the same rewards as hating a dominant sports team: it feels righteous to root for the underdogs, but it’s generally unwise to let that enthusiasm become the basis of one’s bets.
Personally, I favor the emergence of non-state reserve currencies, for example, blockchain crypto-currencies or precious-metal-backed private currencies–currencies which can’t be devalued by self-serving central banks or the private elites that control them.
But if we set aside our personal preferences and look at fundamentals and charts, odds seem to favor the U.S. dollar (USD) making a major move higher in the next few months. Let’s start with a national index of finance-power which combines GDP, military spending, banking, foreign direct investment (FDI) and foreign exchange:
The key take-away is the preponderance of the U.S. and the Anglo-American alliance, a.k.a. the special relationship of Great Britain and the U.S.
The U.S. exceeds Germany, China, Japan and France combined, and the U.S.-Great Britain alliance is roughly equal to the next 10 nations: the four listed above plus The Netherlands, Switzerland, Italy, Spain, Canada and the Russian Federation.
We don’t have to like it, but as investors it’s highly risky to act like it isn’t reality.