That might be a smart move,
Value of the US dollar over time
Posted on 06/10/2014 12:49:52 PM PDT by Olog-hai
As we have been reporting (and forecasting for the past several years), the Eurasian anti-US Dollar axis is rapidly taking shape, with recent events catalyzed and certainly accelerated by US foreign policy in Ukraine, which has merely succeeded in pushing Russia that much closer, and faster, to China. The latest proof of this came overnight when the FT reported that Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers.
According to Pavel Teplukhin, head of Deutsche Bank in Russia, cited by the Financial Times, "Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies and to set up accounts in Asian locations."
Andrei Kostin, chief executive of state bank VTB, said that expanding the use of non-dollar currencies was one of the bank’s “main tasks”. …
(Excerpt) Read more at zerohedge.com ...
By plucking chickens, scaping land, roofing, drying wall, and painting.
The work that illegal aliens or anybody else do is a benefit to the country.
But they are an INVASION.
No, I don’t believe that the yuan is going to be the new reserve currency. A new reserve currency is coming notwithstanding.
No, putting Americans out of work in favor of illegals (especially) is no benefit to the country at all. Especially with those illegals sending their money out of the country to boot.
>> The work that illegal aliens or anybody else do is a benefit to the country.
Illegals are NO benefit. They are a malignant detriment to the CITIZENS who need those jobs. And the government largesse the illegals consume greatly outweigh their supposed contribution.
Dollars are only useful if you can use them to buy stuff. Years ago the USA used to make lots of stuff that it sold in dollars, now not so much. However China does make lots of stuff so it's currency can be used to buy stuff. If the Saudis every decide to sell oil for something other then dollars it's game over for the US dollar.
That might be a smart move,
Value of the US dollar over time
I think the dollar is going to be the reserve currency for the indefinite future, for the simple reason that there is no better alternative. What’s going to replace the dollar?
The yuan? Endangered by a massive housing bubble and a slow decrease in Chinese economic growth. The Euro? They’re worse off than we are, and backed by many entities that could decide to independently pull out. The Rouble? Russia’s economy is one tenth of ours, and is almost totally dependent on oil and gas prices remaining high.
You are correct that there has been talk in the past about dropping the dollar as the reserve currency. But no one has ever talked about replacing the dollar with another countries currency.
Instead, they talk about a basket of currencies replacing the dollar.
All it takes is for one of these alternate currencies to be backed by something tangible. Don’t doubt that any country that hates the USA would damage itself in order to hurt the USA worse; the USA then becomes the scapegoat.
Unless of course people on here have that much faith in Obama’s fiscal non-policies?
Despite the economic malaise Obama has brought us through, and the constant exaggerated refrain that "we don't make anything anymore, China does" and "China owns us and buys our debt", no other country comes close.
China may make our toys, but we make their medical equipment, aircraft, vehicles and industrial machinery.
I don't believe either the idea that a country would prioritize damaging the USA over their own well-being.
“Disproportionate”? In whose view?
Stuff the liberal propaganda. The trade deficit speaks volumes, and it certainly does not bespeak dependence on the USA of any sort.
Nobody believes that other countries would damage their own economies to get back at the USA? It’s already happened, unless everyone forgot what happened in 2008.
No one will really go to the yuan. China is in worse shape than the US.
A basket of assets is more likely.
Yes, I agree with that. But they are looking for a new reserve currency to jump on, and that’s only intensified since 2008.
Of course, there are still those that think that Obama’s fiscal non-policies have not jeopardized the dollar to the point that it’s fatal. Before WWII, nobody thought that the British pound sterling would ever stop being the world’s primary reserve currency, too.
Oh, I think it’s only natural for something to take it’s place. I recall they were trying to use the SDR as a universal currency. The yuan is crap. The ruble is as well.
If someone were to come up with an asset backed unit that was big enough, it could work.
But you need size and stability. That, right now, is just the dollar.
That’s funny. Never thought of it that way. But ZH has an edge to it that I like better than Alex Jones. But they should both be read with a grain of salt, and one eye on who is seeing you read it.
Luv it !
The sooner the USA loses reserve currency status the better.The second it does, it crashes and burns.
’ Let it Burn ‘
http://ace.mu.nu/archives/335557.php
.
It’s coming. Soon our dollars won’t be worth anything.
Why better? That means that the USA’s enemies are empowered beyond the means of the USA to stop them in that case.
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