10
Reasons Why The Reign Of The Dollar As The World
Reserve Currency Is About To Come To An End
http://theeconomiccollapseblog.com
http://albertpeia.com/10reasonsdollarreservecurrencyending.htm
‘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
A lot of this is being fueled by
So
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
The following are 10 reasons why the
reign of the dollar as the world reserve currency is about to come to an
end....
#1
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
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 (
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....
The
five major emerging economies of BRICS -- Brazil, Russia, India, China and
South Africa -- are set to inject greater economic momentum into their grouping
by signing two pacts for promoting intra-BRICS trade at the fourth summit of
their leaders here Thursday.
The
two agreements that will enable credit facility in local currency for
businesses of BRICS countries will be signed in the presence of the leaders of
the five countries, Sudhir Vyas,
secretary (economic relations) in the external affairs ministry, told reporters
here.
The
pacts are expected to scale up intra-BRICS trade which has been growing at the
rate of 28 percent over the last few years, but at $230 billion, remains much
below the potential of the five economic powerhouses.
#3 The
Russia/China Currency Agreement
#4 The
Growing Use Of Chinese Currency In
Who do you think is
It isn't the
In 2009,
A report from
“We
expect at least $100 billion (about R768 billion) in Sino-African trade – more
than the total bilateral trade between
#5 The
The UAE is a fairly small player, but
this is definitely a threat to the petrodollar system. What will happen
to the petrodollar if other oil producing countries in
the
#6
Tensions between the
#7 The
China/Saudi
Who imports the most oil from
It is not the
Rather, it is
As I wrote about the other day,
Saudi Arabia and China have teamed up
to construct a massive new oil refinery in Saudi Arabia,
and leaders from both nations have been working to aggressively expand trade
between the two nations.
So how long is
That is a very important question.
#8 The
United Nations Has Been Pushing For A
The United Nations has been issuing reports
that openly call for an alternative to the U.S. dollar as the reserve currency
of the world.
In particular, one UN report
envisions "a new global reserve system" in which the
"A
new global reserve system could be created, one that no longer relies on the
#9 The
IMF Has Been Pushing For A
The International Monetary
Fund has also published a series of reports calling for the U.S. dollar
to be replaced as the reserve currency of the world.
In particular, one IMF paper entitled
"Reserve
Accumulation and International Monetary Stability" that was published
a while back actually proposed that a future global currency be named the
"Bancor" and that a future
global central bank could be put in charge of issuing it....
"A
global currency, bancor, issued by a global central
bank (see Supplement 1, section V) would be designed as a stable store of value
that is not tied exclusively to the conditions of any particular economy. As
trade and finance continue to grow rapidly and global integration increases,
the importance of this broader perspective is expected to continue
growing."
#10 Most Of The Rest Of The World Hates The
Global sentiment toward the
Decades ago, we were one of the most
loved nations on earth.
Now we are one of the most hated.
If you doubt this, just do some
international traveling.
Even in
If the rest of the world still loved
us, they would probably be glad to continue using the U.S. dollar. But
because we are now so unpopular, that gives other nations even more incentive
to dump the dollar in international trade.
So what will happen if the reign of
the U.S. dollar as the world reserve currency comes to an end?
Well, some of the potential effects
were described in a recent article by Michael Payne....
"The
demise of the dollar will also bring radical changes to the American lifestyle.
When this economic tsunami hits
Most Americans don't realize how low
the price of gasoline in the
There are areas in
Today,
So what happens if the price of
gasoline doubles or triples from where it is at now?
In addition, if the reign of the U.S.
dollar as global reserve currency ends, the
Right now, there is a huge demand for
U.S. dollars and for U.S. government debt since countries around
the world have to keep huge reserves of
But what if that all changed?
What if the appetite for U.S. dollars
and
That is something to think about.
At the moment, the global financial
system is centered on the
But that will not always be the case.
The things talked about in this
article will not happen overnight, but it is important to note that these
changes are picking up steam.
Under the right conditions, a shift
in momentum can become a landslide or an avalanche.
Clearly, the conditions are right for
a significant move away from the U.S. dollar in international trade.
So when will this major shift occur?
Only time will tell.
