10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come

mlurp · #1 (**permalink**) 05-20-2012, 01:40 PM

I received this today from my son in law. Believe it or not, but please consider it and read it all. The replies are more hopeful and state the truth about America's past. Yet today things are very much different.

Quote:

10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End

The U.S. dollar has probably been the closest thing to a true global currency that the world has ever seen. For decades, the use of the U.S. dollar has been absolutely dominant in international trade. This has had tremendous benefits for the U.S. financial system and for U.S. consumers, and it has given the U.S. government tremendous power and influence around the globe. Today, more than 60 percent of all foreign currency reserves in the world are in U.S. dollars. But there are big changes on the horizon.

The mainstream media in the United States has been strangely silent about this, but some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade. There are also some oil producing nations which have begun selling oil in currencies other than the U.S. dollar, which is a major threat to the petrodollar system which has been in place for nearly four decades.

And big international institutions such as the UN and the IMF have even been issuing official reports about the need to move away form the U.S. dollar and toward a new global reserve currency. So the reign of the U.S. dollar as the world reserve currency is definitely being threatened, and the coming shift in international trade is going to have massive implications for the U.S. economy.

A lot of this is being fueled by China. China has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the U.S. economy by 2016. In fact, one economist is even projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

So China is sitting there and wondering why the U.S. dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet.

Over the past few years, China and other emerging powers such as Russia have been been quietly making agreements to move away from the U.S. dollar in international trade. The supremacy of the U.S. dollar is not nearly as solid as most Americans believe that it is.

As the U.S. economy continues to fade, it is going to be really hard to argue that the U.S. dollar should continue to function as the primary reserve currency of the world. Things are rapidly changing, and most Americans have no idea where these trends are taking us.

The following are 10 reasons why the reign of the dollar as the world reserve currency is about to come to an end....

#1 China And Japan Are Dumping the U.S. Dollar In Bilateral Trade

A few months ago, the second largest economy on earth (China) and the third largest economy on earth (Japan) struck a deal which will promote the use of their own currencies (rather than the U.S. dollar) when trading with each other. This was an incredibly important agreement that was virtually totally ignored by the U.S. media. The following is from a BBC report about that agreement....

China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.

The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.

Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.
#2 The BRICS (Brazil, Russia, India, China, South Africa) Plan To Start Using Their Own Currencies When Trading With Each Other

The BRICS continue to flex their muscles. A new agreement will promote the use of their own national currencies when trading with each other rather than the U.S. dollar. The following is from a news source in India....

8 more to read plus the comments.

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10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End

saltwn · #2 (**permalink**) 05-20-2012, 01:50 PM

If we go so goes china.

mlurp · #3 (**permalink**) 05-20-2012, 02:05 PM

Quote:

Originally Posted by saltwn

If we go so goes china.

Thats what we think, China and others see it a bit differently as this says. But if anyone cares to believe in what our news tells us while not printing the entire story, so be it.

I just don't trust China, who is building up it's military, Russia, Iran and the others. Do you?

saltwn · #4 (**permalink**) 05-20-2012, 02:15 PM

Quote:

Originally Posted by mlurp

Thats what we think, China and others see it a bit differently as this says. But if anyone cares to believe in what our news tells us while not printing the entire story, so be it.

I just don't trust China, who is building up it's military, Russia, Iran and the others. Do you?

They can't sell to war torn countries. There have to be consumers for them to exist. I don't think China is concerned with spreading communism as it once was. They have been introduced to the dough rae me

mlurp · #5 (**permalink**) 05-20-2012, 03:02 PM

And that dough rae me can mean many different things. I still don't trust China and the others.

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