And Golds Role in the New Monetary Framework
By JC Collins
With the rise of a multilateral and multicurrency monetary framework the hegemonic position of the United States will be reduced and diversified. The geopolitical and socioeconomic challenges to this necessary transformation are apparent and have materialized in the ongoing Syrian crisis, as well in the financial pressure which has been caused by a strengthening US dollar.
The need to rebalance the international monetary system and reduce the large accumulation of USD in the foreign exchange reserve accounts has begun taking place. This draining of USD liquidity has caused varying degrees of volatility in all markets.
Eventually the framework will shift towards a more balanced footing based on the multicurrency regime of the dollar, the euro, and the Chinese renminbi. Systemic instability in the financial markets and banking sector will eventually be addressed and reduced by the dynamic joint-functions of the three currency reserve mechanics.