Is a currency reset in the making? The ECB warned investors and banks last weeks and demanded preparation for a coming crash. Even though there are no immediate signs for a financial crash or a stock market crash, we face further instabilities paired with investors’ belief that the central banks will bail them out all the time. This is a major sign of a social bubble.
Further the Bundesbank announced in a press release a Renminbi center in Frankfurt, which reveals how the central banks diversify away from the US Dollar. Given that the ECB has recently stipulated negative interest rates we have quite a number of warning signs for problems in the US currency markets.