Civis Romanus

The west wing is one of my favourite TV shows of all time in time in one of its
episode when president of United States who has lost one of his friend his doctor to be specific
broadly tells Leo that Do you know there was a time when roman citizens can walk around the
world free of the fear of molestation he can walk the earth un-harm cloaked only in the protection
of the word Civis Romanus I am a roman citizen and so great was the retribution of Rome that
nobody could harm its citizens .
I will agree no country in todays world can come anywhere close to Roman Empire
and only one which is comparable is today's USA. There are many reasons for its power but
since I am writing this blog for finance savvy readers so I will try to concentrate on one very
specific weapon in its arsenal, no it's not nukes nor its too big to fail banks (Europe still holds a
great deal of say in this matter) Yes you are right it is Dollar $ $ the good old greenback. Star of
Uncle Sams eyes and main reserve currency of the world whether you are in good terms with
Uncle Sam or not you need to keep his printed money in your vault
Few of you may remember the main one of the reason for its becoming reserve
currency was its backing with US gold, but now it is powerful than ever without any backing
because once you have become oxygen of world market you cannot possibly be replaced.
Oxygen supplier has many benefits like it can choke the client anytime he wants, the US can just
pretend to worry about deficits just raise borrowing limit every year and get on with it, it can bail
out its rotten banks any time he wants, it can keep printing money but inflation wont be affected
because of its easy flow outside the country and it can change its monetary policy anytime and
the world has to adapt accordingly.
Its not like it was never challenged there was a time when Nixon defied the world and
took it out of gold slandered and who can remember the real threat from the old boss the Euro
which is fighting for its survival. The new challenger in the ring is China, but nobody has helped
more than china to strengthen Dollar place as the reserve currency in past decade.
I always thought that we need to get habitual in adapting ourselves according to the US
will and here comes women who speak wisdom but sound more like sweet 5-year-old school girl
Janet Yellen. She is the first one who has recognized the effect of US Fed policy on rest of the
world especially the countries fighting inflation in their territory. There has rarely been the time
when the phrase effect of Fed policy on world economy had appeared before. There have been
critics of this mention saying that world economy is not her mandate I ask why not after all she
holds an office which print money for the world not only the USA and the day it will print money
only for the USA will be one of the final days of the latest version of Roman Empire .