I ask this question as I can see short term difficulties for Iran and Long term difficulties for the "west".

My thoughts are if I was a developing country or a middle eastern country etc. I would reconsider my deposits in America and maybe Britain depending on which route we take.

America may be the largest or most influential economy at present, but is beginning to fade, and the financial institutions will be more flexible and allow themselves to be situated elsewhere.

Any thoughts?

I was thinking more along the lines would you use a Bank which at its own whim stop your cheques?

My "feelings" are that it will make governments more cautious at depositing "Cash" in USA and GB if we follow suit. Also, I believe if China and Middle Eastern countries withdrew their deposits, overnight the dollar would drop into a black hole.

This would provoke economic chaos.

I don't think being in cash would be protection, ie I can see the advantages of gold.