Wednesday, April 15, 2009

World Reserve Currency. III.

Today I elaborate on criteria II, viz. "the currency must be widely used in international trade."

Why ?

To state the obvious, a world reserve currency must be USEFUL in the world, viz., useful in world trade as that's what money is used for: trade in goods and services.

Hmmm ... can anyone think of commodities that are priced in something other than dollars ?

Cocoa is priced principally in British pounds, as 40% of the world's supplies come from Ivory Coast, a former British colony. I suppose there are others, but I can't think of them now.

Nothing is priced in Chinese yuan. So much for the bloviation of the Red Chinese leader. Nothing is priced in rubles. Ditto for Putin's blather. How about the Euro ? Uh ... zippo. The Euros only been around for about ten years. Eventually perhaps. The Swiss franc ? I suppose cuckoo clocks are priced in Swiss francs. The Japanese yen ? Nope. The Canadian $ ? Nope. The Aussie dollar ? Nope. Gold ? nope. Silver ? Nope.

The US dollar ? Hmm, that list would fill the page.

What about the SDR, the International Monetary Fund's currency blend ? Nope. Nothing is priced in it, not even economists' salaries.

How can something be a "reserve" if it's not very, very useful for trade ?

Lots of pundits and polemics in the US and Arabia and other nations talk about pricing goods and services in other currencies, but they all seem to run into the problems discussed in criteria number I. Not enough of those other currencies are held around the world to make that practical. The cause of that fact was written about Monday, so I won't repeat it.

The US dollar is the only currency widely accepted in international trade and is the pricing currency for nearly every widely traded commodity in the world. No other currency is even a glimmer in the eye of the dreamer.


Copper is still rising - now $2.16/lb. Maybe those smart buyers in Red China are stocking up at low prices in advance of the next boom.

Word of the Day

"Eldritch" - adjective (Scottish) [$10]
Eldritch means 1. wierd; 2. hideous.
Sentence: The eldritch SDR of the IMF is a joke, being a mere computer conflation of the currencies of the IMF's major contributors of capital.

Le Mot du Jour

"Or" - noun, masculine.
Or means gold, gilt, guilding.
La Phrase: La régle en or: on qui a l'or fait les régles.
Sentence: The golden rule: he who has the gold makes the rules.


Spin-em said...



all batting under .200

Does this news make a certain boisterous commentator on this blog look like a fool???

I think so


Bunkerman said...

Hmmm ... a translation challenge.

Stinky = puant.

Sox = pl of sock = chaussettes [ sounds homo ;) ])

Red = rouge.

Let's Go Stinky Sox =

Allons Chaussettes Puants !!!

Red Sox = Chausettes Rouges

Les Chaussettes Rouges sont puants.

The Red Sox are stinky.


Bunkerman said...


Les Yankees sont médiocres, 4-4.

mern said...

tipper gore played with the dead last night.


im going to see widespread panic tonight at the HOB.

batting clean up at lead guitar is a mister jimmy herring.

imo, better than garcia in his prime, but he cant sing. but he can shred a guitar. there is one reason herring is in widespread, and haynes is slutting with the dead. warren doesnt cost as much, because he sux!

mern said...

Right-wing extremist groups may be using the recession and the election of the nation's first African-American president to recruit members, a Department of Homeland Security report contends.

look at the picture that represents "the right" now.


Bud said...

les chaussettes rouges better shape up quickly

les yankee douchebags gettin cocky and annoying

Bunkerman said...

hmmm "douchbag" does not tranlate well into French.

"scumbag" tranlsates to "salaud" which more literally means bastard, swine. It's a masculine noun or an adjective.

I suppose Bud would say,

Les Yankees sont salauds.

Bunkerman said...

Allons les Indiens !!!

Spin-em said...

never cocky or boast......just counter LOOOOOOOOUD---- MOUTH YAPPERS

mern said...

Former Illinois Gov. Rod Blagojevich's career as a politician appears to be over, but a new career in the world of reality television could just be beginning.

The disgraced former governor has inked a deal to appear on an NBC celebrity-themed reality show, assuming a federal judge allows him to travel as his criminal charges remain pending, the network said in a statement.

SET THOSE TIVOS AND DVR'S BOYS AND GIRLS! the train wreck that just keeps on giving........

mfl59 said...

Bud are you teeing it up this week? Can we get an update on your handicap?

Bud said...

' L'aquarium de requin est un feu !!!!! '

Bud said...

yes...........teeing it up virginia for the next 6 weeks ( bull run and stonewall jackson this wknd.....75 and 120bux fees)

merci jim !!!

well.....after dipping to as low as 13.8.......i drifted back to 15.7

which is why i am getting lessons and new wedges and new irons........and possibly a new driver ( that new cleveland launcher ......demo day saturday......i gonna hit it )

as always my coach will guide me

'disguised as a pga pro'

Bud said...

rod blaggs??? are you f'ng kidding me

i won't waste 1 nanosecond on him......albanian trailer trash

mfl59 said...

get ready for February 2010 Buddy...I'm coming down to name the match...

Spin-em said...

$500 on mike

Bud said...

feb 2010 ??

well ace..............i hope to have been victorious by then

my goal here is to piss everyone off at me............get them so mad using wit and humor and shots that they have no desire to interact with me

frsoty was done.......but stupid spin ' shake hands and make up '

spin next on my list.........he's about to crack......i can feel it

'mission accomplished'

Bud said...

tejas ...........that was easy

' the bud i knew was a nice guy'


Bud said...

L'aquarium de requin est or !!!

does that work Bman ??

Bunkerman said...

If you say, l'or then yes, metaphorically.

But just replace "en feu" with "en or" works better, meaning "made of gold".

Bunkerman said...

or meaning "golden"

Bunkerman said...

flipped a bit of GT, holding more than core.

Spin-em said...

hey cromagnum!!! ...spinny never quits.....never..its in my blood boy

mfl59 said...

Bud why such anger? I really dont understand son...

I'll give ya 5 a side...$10 junk...$5 snakes....$25 nassau....

Bud said...

L'aquarium de requin en or !!!!!!

Bunkerman said...

you still need the verb, Bud .. est = is.

Bunkerman said...

or maybe you meant ... tank of the golden Shark.


Bud said...

oh no..... diceK on the dl.....oh well

Les Chaussettes Rouges are in 'le big trouble'

PS......too bad there isn't a french word for douchebag........spin gets very upset when i use that word

Spin-em said...

he'll never show mfl.....notice the clamup and pretending he didnt understand that your playing down there???...LMAOOOOOOOOOOOO

bock bock...bock,bock,bock


Bud said...

listen you yankee douchebag !!

no's april 2009........he's talkin about you want me to do??? ...........go wait on the first tee....sheeeesh

PS.........oh sorry.......called you a douchebag again......please don't cry

Spin-em said...

Les Chaussettes Rouges are in 'le big trouble'

just because you post it doesnt let you off the hook.....Dice K has a noodle arm????

I think so

they start losin so Budee' quits...then they start winning and he jumps aboard..lmaooooooo

Bud said...

wakefield no-hitter in the 7th

Les Chaussettes Rouges are back !!!!

Spin-em said...

april,feb. Saint Paki wont show ur puss face

Bud said...

ummmm............just cuz the red sox suck...doesn't mean i won't pound the yankees

i can't wait for A-fraud to come back........that's when i use the good stuff

Spin-em said...

to nice out to waste my time with you..think of something clever or dont post at all....

Spin-em said...

your good at poundin im sure

Spin-em said...




Derek Jeter game winning rbi 2 for 4

Andy Petite first vote HOF!!

2 0f 3 from Tampa...


tejasjeff said...
This comment has been removed by the author.
tejasjeff said...

my goal here is to piss everyone off at me............get them so mad using wit and humor and shots that they have no desire to interact with me

When does the wit and humor gig start?