Fed Official: Diversify Into Asian Currencies, Euro

Can you read the writing on the wall?
Economists Are Thrilled To Hear Stanley Fischer Will Be Joining The Fed

Stanley Fischer was officially nominated Friday as a Governor and Vice Chairman of the Federal Reserve, the job Janet Yellen is vacating as she becomes Chairwoman.
While Yellen is incredibly qualified, it's exciting to have Fischer beside her.

He's a legend in central banking and economics circles, and for good reason. Fischer's a highly accomplished monetary economist, and excelled as Israel's central banker.

Policymakers see dollar losing reserve currency allure

"I'm more optimistic about the euro gaining strength as a potential reserve currency," Bank of Israel Governor Stanley Fischer said during a panel discussion at the annual World Economic Forum in Davos, Switzerland.

"We ourselves are diversifying into currencies which we would never have put in the reserves before, including the Australian dollar and so forth," he added. "I think people will diversify their reserves."

Too bad those Asian currencies are dependent on the Chinese economy in the short-run. Though if one owned gold, it would mitigate a lot of that risk. In sum: central bank heads say to diversify into Asian currencies that are dependent on the Chinese economy. The Chinese central bank is buying gold because it knows no one is going to trust its currency in a crisis. Solution: cut out the middle men and buy gold.