Putin Losing Faith in Dollar (frown), But Shuns Protectionism (smile).

Putin, ostensibly not the leader of Russia, but still pretty much the leader of Russia, waxed both reassuring and ominous (for those of us sitting here in the United States of American Excellence). While speaking at the World Economic Forum in Davos, Vladimir touched on the importance of nations not resorting to military buildup to stimulate their economies, or relying on state control. Ah, but with the soothing wisdom out of the mouth of the mouth of Russia, along comes something a bit unsettling.

The BBC reports him as saying:

"Excessive dependence on what is essentially the only reserve currency is dangerous for the world economy, therefore it would be expedient to encourage an objective process for the emergence of several strong regional currencies in the future," he said.

Sometimes, when imaginging ourselves the leaders of Asia, the Middle East, or Europe, we think the very same thought. Why should the United States' dollar be the primary reserve currency? Of course there are very good reasons, number one being our general ability to bring stability and tons of good stuff (Ipods, etc) to the world.  Still, we are not surprised that foreigners might tremble a bit over the full faith and credit of the American way, and especially after recent financial shenanigans here.

Russia is not the first, and won't be the last, to push the idea of a multi-polar reserve currency world. We hope the United States is ready for this when it sneaks up on us.