World needs to end risky reliance on U.S. dollar - BoE's Carney

[bronxiteforever]

August 23, 2019
JACKSON HOLE, Wyo. (Reuters)

JACKSON HOLE, Wyo. (Reuters) - Bank of England Governor Mark Carney took aim at the U.S. dollar’s “destabilising” role in the world economy on Friday and said central banks might need to join together to create their own replacement reserve currency.

The dollar’s dominance of the global financial system increased the risks of a liquidity trap of ultra-low interest rates and weak growth, Carney told central bankers from around the world gathered in Jackson Hole in the United States.

As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies,” Carney said. Such a system could dampen the “domineering influence” of the U.S. dollar on global trade.

https://www.reuters.com/article/uk-usa-fed-jacksonhole-carney/world-needs-to-end-risky-reliance-on-u-s-dollar-boes-carney-idUSKCN1VD28H

[Hoyt]

1. So trump takes aim at China's currency, and the world decides dollars are destabilizing.

And ignorant white wingers are clapping like seals for trump.

[Mike 03]

2. Boris Johnson will have some explaining to do at the G7.

As if tRump isn't all ready in a bad enough mood. This will put him into the stratosphere. The dollar bears have been worried about an alternate reserve currency ever since the Euro was proposed.

[bronxiteforever]

3. Thanks! I forgot about Boris. It's going to be wild.

Unless they drug IT45 up with tranquilizers.

[Trenzalore]

6. This is assuming if Trump is capable of understanding the implications of this

I don't think he is and I don't think there are any adults left in the room to explain to him this is very bad for American business.

[0rganism]

4. well, he's not wrong

we've just shown the world the true stability of our democracy, and unsurprisingly it's less than reassuring

[bronxiteforever]

7. Great point.

[roamer65]

5. I see a dollar crisis coming.

This isn’t Putin or Xi. This is the Governor of the Bank of England. Not good.

[bronxiteforever]

8. It sure seems that way and not good sums it up.