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SUNIL JAIN

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Will the G-20 ever like to break or reverse the global economy spiral? If so, why?

Post world-war-II, US Dollar banished British Pound as the de-facto global currency, and post 1971, the need of benchmarking US Dollar against weight of gold or any other physical object vanished. Now in the current era, US Dollar is THE ‘Reserve Currency’ of our planet.

Exporters send ‘goods’ across borders, and importers send ‘dollars’ in return. Exporters exchange the dollars into local currencies at their local banks, and purchase their desired ‘goods’ including the ones needed to export more… and an eternal spiral continues to grow.

Now that US Dollar is the THE reserve currency for the foreseeable future, and all other regional currencies seem to float well with the US Dollar (even in the times of extreme chaos), and adequate supply of US Dollar can be maintained to keep the global demand satisfied, will the G-20 ever like to break or reverse the global economy spiral? If so, why?

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    Dec 27 2012: I don't think it is in the best interest of the G20 to get off their collective behinds and do something about it. It was said by Rupert Murdoch that he could turn the USA around and balance the bank with his money alone. But has he done it? No way. If I had the money to buy out all the USA debt I would consider it seriously. So why don't the top 1% get their butts and help out the economy of the USA? I can only hope this will happen.

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