Will dollar soon lose status as world reserve currency?

Quote:The U.S dollar is shrinking as a percentage of the world's currency supply, raising concerns that the greenback is about to see its long run as the world's premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.

Quote:For a country with a budget deficit in excess of $1 trillion a year, the consequences of losing standing as the world's reserve currency would be dire.

"If the dollar loses status as the world's most reliable currency the United States will lose the right to print money to pay its debt. It will be forced to pay this debt," Bove said. "The ratings agencies are already arguing that the government's debt may be too highly rated. Plus, the United States Congress, in both its houses, as well as the president are demonstrating a total lack of fiscal credibility."

(05-29-2013 02:50 PM)Ninerfan1 Wrote:  Will dollar soon lose status as world reserve currency?

Quote:The U.S dollar is shrinking as a percentage of the world's currency supply, raising concerns that the greenback is about to see its long run as the world's premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.

Quote:For a country with a budget deficit in excess of $1 trillion a year, the consequences of losing standing as the world's reserve currency would be dire.

"If the dollar loses status as the world's most reliable currency the United States will lose the right to print money to pay its debt. It will be forced to pay this debt," Bove said. "The ratings agencies are already arguing that the government's debt may be too highly rated. Plus, the United States Congress, in both its houses, as well as the president are demonstrating a total lack of fiscal credibility."

I hope this was a rhetoric question. Obama believed crashing the dollar would make jobs come back from China (which it will), and improve home values (which it will).

Too bad everything is about to be so darn expensive, no one cares if they have a job.

Could not disagree with any foreign entity that has their doubts about what the heck is going on in this country.

If I remember correctly, OPEC wanted to move away from dollars a few years back.

When you base a means of trade on nothing but a promise?...and print money out of thin air?...schit happens.

Can't happen here. We're going to be on top forever, no matter what.

(05-29-2013 04:26 PM)smn1256 Wrote:  If I remember correctly, OPEC wanted to move away from dollars a few years back.

With China becoming a major player in oil it's more likely than it used to be, but I'm not sure it's something thats going to happen in the next decade. The US-Saudi relationship is probably strong enough to keep the petrodollar in place for the foreseeable future when you also consider how secretive china is when it comes to the true strength of their economy.

I think this would be a great thing. It would force Congress and the President to fix the checkbooks.

(05-30-2013 06:51 AM)ClairtonPanther Wrote:  I think this would be a great thing. It would force Congress and the President to fix the checkbooks.

Ummm...."Fixing" the checkbook is no problem when you have a fiat currency. Those in power are lousy leaders..but..master accountants.

My dollars have been dying since 2008

Positive Rep me or I'll never let Prince Albert out of the can.

Just shows how absolute power corrupts... not only individual power, but sovereign power. I don't know much Dutch history, but everyone else on that list went through hyperinflation and went broke. Of course Spain was the worst of the bunch. They never really recovered from Philip II's reign.

(05-30-2013 05:56 AM)200yrs2late Wrote:  

(05-29-2013 04:26 PM)smn1256 Wrote:  If I remember correctly, OPEC wanted to move away from dollars a few years back.

With China becoming a major player in oil it's more likely than it used to be, but I'm not sure it's something thats going to happen in the next decade. The US-Saudi relationship is probably strong enough to keep the petrodollar in place for the foreseeable future when you also consider how secretive china is when it comes to the true strength of their economy.

Does China even allow its currency to be used outside it's borders?

(05-30-2013 08:04 AM)VA49er Wrote:  Does China even allow its currency to be used outside it's borders?

There are probably limits as to how much a person is allowed to take outside of PRC.

But in terms of individual bartering or trade, I don't see how the Chinese authorities can not "allow" people to sell a car or a TV in a foreign country and accept yuan in exchange.

As to the OP, no I don't think the dollar is "dying" anymore than the British pound "died" in the 1945-1980 era. But the dollar is diminishing in value just as the pound did then. I think that process will continue until the dollar finds its own level. Instead of saying that the dollars is "dying" let's say it being "devalued". This will definitely involve some personal pain for people whose savings/investments/wages are denominated in $US.

(05-30-2013 06:51 AM)ClairtonPanther Wrote:  I think this would be a great thing. It would force Congress and the President to fix the checkbooks.

Just going to drop some more thoughts and add on to what I said.

The dollar will never die as long as American shops accept the dollar and pay their employees with the dollar. The US still has natural resources like oil and natural gas to sell the world as well. We can still force nations that buy our resources to buy them in dollars rather than some new world reserve currency.

Now, it is true that the Fed Reserve won't have the ability to inflate us out of debt. So we as a people will have to come up with alternatives to raise revenue to pay off the debt. Rebuilding our infrastructure is a solution to this, even though it temporarily creates more debt. Rebuilding our infrastructure will put people to work in mills, on construction sites, and driving rigs. My theory is rebuilding our infrastructure pays for itself and them some. At the same time, our government needs to be far more business friendly than it currently is to attract jobs (manufacturing) to sell the world.

So yes, I firmly believe that the dollar losing its status as the worlds reserve currency is a blessing in disguise for the American people. At the same time, it could also be a nail in the coffin regarding 1st World Status. It's really up to the people and government on how they'd handle such adversity.

The new world order keeps marching into the scene.

(05-31-2013 12:22 AM)GoApps70 Wrote:  The new world order keeps marching into the scene.

Don't know if it's some NWO upon us or not, but I do know its history repeating itself: see Great Britain.