Adviser Carlton Delfeld of Chartwell Global ETF Report likes Switzerland for its strong currency backed by ample gold reserves, fiscal discipline, trade surplus and very little foreign debt.

FORBES: Magazine Article

Yet mitigating the risk of default is the fact that Ecuador's ability to service its debt has improved in recent months, as high energy prices, increased taxation of the oil sector and the state's take-over of Block 15 previously run by a US company, Occidental Petroleum (Oxy), are boosting the fiscal surplus and foreign reserves.

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Almost everybody understands that low inflation, good fiscal accounts and healthy international reserves are essential.

BBC: Latin America is enjoying the good times - at last

This year's fiscal crises notwithstanding, countries could shift more reserves into euros if America mismanaged its finances or if they feared it would.

ECONOMIST: Is there a better way to organise the world��s currencies?

Following reports that Cyprus may be selling 400mm euros worth of its gold reserves to help finance its own fiscal problems, many are concerned that other European central banks will begin to sell-off their gold positions to better position themselves to fortify their own sovereign balance sheets.

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The large potential cut caused many districts to budget both properly and safely this last fiscal year, leaving stockpiles of cash in their reserves.

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But boosting the Medicare reserves also appeals to Mr Gramm's fiscal hawkishness, for it might stave off a tax hike early in the next century, when the programme's costs will rise as the number of retired people grows.

ECONOMIST: Phil Gramm goes shooting

Some governors are proposing to raise reserves further as they prepare budgets for the next fiscal year.

WSJ: States Build Cash Reserves, Raising Rainy-Day Debate

Our goal was to continue to be able to respond to the open disasters and maintain enough reserves for any new disasters until we get into the next fiscal year.

WHITEHOUSE: Press Briefing