Karl and China are in agreement about the safety of U.S. financial assets. Karl writes:
“We should begin to talk and think seriously about how to Internationalize the financial system and perhaps secure at least a viable competitor to the US in the issuance of safe assets.”
Echoing this, China’s official Xinhua news agency writes:
“International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country…”
There may be no alternative to U.S. financial assets right now, but people are certainly starting to look hard.