Watch It.

[Obama 2012 1,714]

it's a yawnfest, but worthwhile for those who have no idea/understanding of what would happen if we lose the US Dollar as the World's Reserve Currency.

http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSIM127/PR

[Usui Takumi 1,562]

Still listening... just noted he likes to compare current prices to the low points of 2009...not 2007/2008 when prices were higher.

Edited February 24, 2011 by Sousuke

[Usui Takumi 1,562]

Sorry went to sleep about 20 minutes in to this last night. The major element I remember from last night was the comparison of pound sterling and the issues of the 1970's in UK to the current US position. What he was saying about the currency doesn't exactly match history in terms of reserve status. (he stated that by the beginning of the 1970's Sterling had lost reserve status - replaced by the dollar...this diminished status actually occurred much much earlier) Sterling was the world's reserve currency in the 19th century. As we progressed into the 20th century the world actually shifted to more of a basket system with the pound, franc, and mark making up the largest sections. After the Armistice in 1918, the mark collapsed and the dollar entered the world stage to take its place. Then after World War 2 the dollar was established under a new system as the world reserve.

Therefore if you are to draw conclusions from the pound it should be that a currency loses status over a period of time. The dollar will probably lose its status, but it won't happen over night.