{"id":47953,"date":"2019-08-24T17:17:53","date_gmt":"2019-08-24T22:17:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47953"},"modified":"2019-08-24T17:18:01","modified_gmt":"2019-08-24T22:18:01","slug":"why-mark-carney-thinks-the-dollar-can-no-longer-be-the-worlds-reserve-currency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47953","title":{"rendered":"Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency"},"content":{"rendered":"\n

Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency<\/a><\/h3>\n\n\n\n

While Jerome Powell’s highly anticipated Jackson Hole speech was, in the words of Brean Capital’s Russ Certo “underwhelming and anti-climatic”, one couldn’t say the same for the shocking luncheon speech by Bank of England’s outgoing governor, Mark Carney, titled “The Growing Challenges for Monetary Policy in the current International Monetary and Financial System<\/a>“, where he dedicated no less than 23 pages to a stunning – for a central banker – cause: to describe why the dollar’s  “destabilizing” reserve status role in the world economy has to end, and why central banks need to join together to create their own replacement reserve currency, one potentially tied to Facebook’s new “stablecoin” Libra, although in reality any “Synthetic Hegemonic Currency” as Carney defined it would do.<\/p>\n\n\n\n

But first, a quick tangent: the reason we say Carney’s speech was shocking <\/em>is not for what it proposes – after all, we have long argued that a world in which the dollar’s reserve currency status would be stripped away by the establishment and granted to some alternative – whether gold, or a basket of currencies like the IMF’s SDR, or a cryptocurrency like bitcoin – is coming in posts such as:<\/p>\n\n\n\n