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Michael Howell on the Recent Rise of Liquidity and the Dollar's Triffin Dilemma

Mining Stock Daily

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The Trifundilema and the Global Prospects of the US Dollar

The trifundilema highlights the threat of a potential loss of confidence in the value of the dollar held internationally by foreign investors. The most feasible alternative is probably the Chinese yuan, which is years or decades away from ever challenging the US dollar. If governments are going to fund what seem to be huge, whopping and rising fiscal deficits, the only choice they've got is to start printing money because the numbers simply don't end up otherwise.

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