If the US dollar ceases to be the worlds reserve currency, what will they use instead? The pound? The yen? The Euro? The Swiss Franc?Or will they switch to commodities like gold or silver or oil? And where will they store all of these assets?The US still has the strongest economy, and uncertainty in Europe still causes people to buy US treasury bonds. Maybe less so than previously. But its still better than the alternative.Much depends on whether or not Congress can come up with a plan to reduce the deficit. If they do, I think the problem will be less of a concern. If they do not, then the situation continues to deteriorate and we could be headed to the problems in Greece. Yes, we have the assets to cover our debts, but the austerity required will be painful.So lets hope they can work it out. Otherwise, strong companies with solid export markets will probably continue to do OK. But people will be watching closely to figure out which ones those are.Buying gold, commodities in the ground, land, timber, etc, etc, could be the answer, but those are drastic moves to me. I'd rather hope that Congress comes up with a program that is at least plausible. AARPs new position that changes in Medicare may be necessary is a very encouraging sign.
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