Howdy Vorts, Energy has displaced the US dollar as coin of the realm. This simple observation permits an examination of not only the US dollar as being a reserve currency, it also allows us another view into the fundamentals of gold. When gold reached $ 1,000.00 per oz/troy.. it demonstrated the US dollar has lost it's posture as a reserve currency.
The world does not yet have another " true medium outside of gold", so the logical step may be to fall back on the "value" of a barrel of crude oil. The USA has operated under the Keynesian economic model since FDR. This model ,as in all pyramid schemes, anticipates a sustained gravy train with biscuit wheels economy where everything purchased yesterday will be paid for in tomorrows dollars.... well.. err.. until.. there is no tomorrow. A new energy formula and policy may be stymied.. not by lack of leadership.. but by lack of understanding of the medium of currency. The nations with crude oil based economies may be the ones forced to construct a new currency model just as the USA was forced by the great depression into the Keynesian. Richard
