All you need is USD

Some tips from a friend who was visiting Cairo recently, when riots and protests broke out.

When you find yourself in a “trouble spot” somewhere in the world….

• Follow the Americans as their government seems to be the most passionate in extricating their citizens from conflict zones.
• Gold, travellers cheques and most currencies aren’t desired.
• Carry cash as ATM’s and Banks may not operate.
• In the absence of your own government’s help, always carry a few thousand U.S. Dollars to pay a charter pilot to fly you to Istanbul.

In his experience, no other currency mattered (except maybe for a EUR 500 note), yet the currency markets are bearish towards the U.S. Dollar.

It seems that when the s**t hits the fan, it’s not gold that is the world’s “safe haven” currency, but instead it remains the U.S. Dollar.

Perhaps the USD is in a longer term decline due to economic policy, but as history has suggested, the country or empire that spends the most on its military, maintains the world’s reserve currency and irrespective of which political party is in charge, I can’t see the spending trend reversing.