RBA's Hauser: Regarding the US Dollar's Role as a Safe Haven

The True Nature of a 'Safe Haven'

When we hear the term 'safe haven'—originally 'safe harbour' in Old Norse—it often brings to mind a tranquil sanctuary, a place where sailors can rest and recover after battling the unpredictable ocean. However, reality does not always match this serene image.

For instance, in 1770, as Captain Cook was returning from his renowned expedition, his ship, the HMS Endeavour, ran aground on the Great Barrier Reef. Facing grave danger, the crew sought refuge in a nearby river mouth, a place the Guugu Yimidhirr people call Waalumbaal Birri. Yet, instead of finding peace, they encountered fierce winds and waters teeming with crocodiles, making their stay anything but restful.