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<p>[QUOTE=&quot;GoldFinger1969, post: 5424745, member: 73489&quot;]Folks, a RESERVE CURRENCY like the U.S. dollar is a function of many things but chief among them are:</p><ul> <li>Private property rights respected</li> <li>Rule of law established</li> <li>Large, liquid financial markets</li> </ul><p>So many people predicting the end of the dollar fail to take those into account.</p><p><br /></p><p><b><span style="color: #0000ff">Here&#039;s what I mean.</span></b>&nbsp; Forget the first 2 items, which are a major problem with Communist China or other authoratarian countries.&nbsp; <b><span style="color: #0000ff">If you don&#039;t have large, liquid financial markets than you are USELESS to institutional investors and/or central banks.</span></b></p><p><br /></p><p>If you need to move $5 billion or $20 billion for a short period of time, there are very few financial markets which can handle that kind of inflow.&nbsp; U.S. Treasuries and U.S. Mortgage Backed Securities (MBS) are two that are big enough.</p><p><br /></p><p>Most of these other countries trade maybe 1-10% of U.S. markets in terms of daily volume.[/QUOTE]</p><p><br /></p>

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