"No reason for dollar to be world's reserve currency"

[validium]

 http://rt.com/op-edge/171144-dollar-reserve-currency-usa/

RT: Why are European countries so economically dependent on the States?

PS: They are not. I think it is the other way around - the US is very dependent on the rest of the world. It is just incumbent on the rest of the world to figure that out. But the US dollar is still functioning as a reserve currency, so the dollar is a part of larger transactions but there is no reason for the dollar to be at the center of these transactions because the dollar shouldn’t be a reserve currency. Maybe at one time when we were the world’s largest exporter, as far as biggest trade surpluses, we had high savings rates, and the dollar was backed by gold. [At] one time maybe the dollar deserved to be a reserve currency, but certainly those conditions have changed dramatically. The US does not share any of the characteristics it had when the dollar became a reserve currency. It is just a matter of time before it no longer functions as a reserve currency. And the more we antagonize the rest of the world with spying or with these huge fines on foreign banks, the quicker this process is going to be unraveled.

Your thoughts?

[dadugan]

During and after WW2, US were the largest exporter because power house like Germany were so wipe out on their factory heart land. The rest of the world also gone back a few decades of progress after the basic infrastructure are being destroyed in the war.


US has its manufacturing base in tact and untouched during the war. The rest of the world need to buy from US to rebuild their infrastructure. While products in the US were sold with premium, basic commodities from the rest of the world were being sold at huge discounted. Profit from the trade (US) were also used to acquire cheap basic commodities producing estate/farm from the rest of the world. This allow US to become enormous wealthy and enable US to capture the resources of the rest of the world and hence setting the stage for USD dominant.


We are at a stage where the rest of the world has caught up and upcoming power trying to free themselves from the USD relationship. How event unfold in the future is anyone guess.

[Yakamoto]

During and after WW2, US were the largest exporter because power house like Germany were so wipe out on their factory heart land. The rest of the world also gone back a few decades of progress after the basic infrastructure are being destroyed in the war.


US has its manufacturing base in tact and untouched during the war. The rest of the world need to buy from US to rebuild their infrastructure. While products in the US were sold with premium, basic commodities from the rest of the world were being sold at huge discounted. Profit from the trade (US) were also used to acquire cheap basic commodities producing estate/farm from the rest of the world. This allow US to become enormous wealthy and enable US to capture the resources of the rest of the world and hence setting the stage for USD dominant.


We are at a stage where the rest of the world has caught up and upcoming power trying to free themselves from the USD relationship. How event unfold in the future is anyone guess.

This was helped by the IMF (Or fed, I have to check my source) and World Bank, which had their memberships sold in "shares" or something, and required a few percent to be paid in USD. Countries were loaned to in USD by said institutions, and then USD began cycling more regularly throughout European countries.

As such, debt in millions of dollars was created in USD, workers rebuilding we're paid in USD, and they had to exchange it, but they were getting paid.

It was a great plot, cause the IMF (Or fed) and the world bank were created right after WW2, within 10 years of the end of the war. Their membership payment forms were great ways to peg the USD as the world currency.

[onlyu]

China already the world biggest exporters and second largest importer.

It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

[Marlo Stanfield]

During and after WW2, US were the largest exporter because power house like Germany were so wipe out on their factory heart land. The rest of the world also gone back a few decades of progress after the basic infrastructure are being destroyed in the war.


US has its manufacturing base in tact and untouched during the war. The rest of the world need to buy from US to rebuild their infrastructure. While products in the US were sold with premium, basic commodities from the rest of the world were being sold at huge discounted. Profit from the trade (US) were also used to acquire cheap basic commodities producing estate/farm from the rest of the world. This allow US to become enormous wealthy and enable US to capture the resources of the rest of the world and hence setting the stage for USD dominant.


We are at a stage where the rest of the world has caught up and upcoming power trying to free themselves from the USD relationship. How event unfold in the future is anyone guess.

This was helped by the IMF (Or fed, I have to check my source) and World Bank, which had their memberships sold in "shares" or something, and required a few percent to be paid in USD. Countries were loaned to in USD by said institutions, and then USD began cycling more regularly throughout European countries.

As such, debt in millions of dollars was created in USD, workers rebuilding we're paid in USD, and they had to exchange it, but they were getting paid.

It was a great plot, cause the IMF (Or fed) and the world bank were created right after WW2, within 10 years of the end of the war. Their membership payment forms were great ways to peg the USD as the world currency.

The IMF has SDRs(Special Drawing Rights). Is that what you were referring to in your post?

http://www.imf.org/external/np/exr/facts/sdr.HTM
http://en.wikipedia.org/wiki/Special_drawing_rights

[negafen]

US still has the strongest military in the world right now.

It will enforce rules and commerce until another country able to challenge it.


People thinking bitcoin can become a reserve currency without a military is delusional.

[diebuntekuh]

US still has the strongest military in the world right now.

It will enforce rules and commerce until another country able to challenge it.


People thinking bitcoin can become a reserve currency without a military is delusional.

Most US soldiers do get paid in USD, right?  What will happen when the soldiers find out that they got scammed and their fiat is worth less than shit?

[JustBetweenUs]

US still has the strongest military in the world right now.

It will enforce rules and commerce until another country able to challenge it.


People thinking bitcoin can become a reserve currency without a military is delusional.

We have the greatest military there is. It's called the internet.

When even the soldiers in the military are aware of the scam, good luck to the bankers finding someone willing to fight for them in exchange of worthless fiat.

[jbrnt]

China already the world biggest exporters and second largest importer.
It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

This is not what I want to see, but it is inevitably true.

Being a reserve currency is about trade and political stability. The Chinese is exporting so much to every country, it is strategically wise for every country to hold RMB as a reserve to stabilise exchange fluctuations. The middle east has always wanted to factor the dollar out of oil prices. If China buys enough oil from them, oil prices in RMB is not out of the question. That is going to be the tipping point.

[arbitrage001]

US still has the strongest military in the world right now.

It will enforce rules and commerce until another country able to challenge it.


People thinking bitcoin can become a reserve currency without a military is delusional.

We have the greatest military there is. It's called the internet.

When even the soldiers in the military are aware of the scam, good luck to the bankers finding someone willing to fight for them in exchange of worthless fiat.

Information can only go so far. Egypt failed revolution is a good example on gun >>> information.

[tmnt]

the usd is falling along with all other fiat man controlled money. i would like to see bitcoin being used in a very smart way in the future.

[BitDreams]

Bitcoin would pick up the slack from a failing dollar so fast Chuck Norris would take two steps back.

[Ron~Popeil]

China already the world biggest exporters and second largest importer.

It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

Cina has their own currency problems. None of the currency manipulators will be able to sustain it long term.

[Gargulan]

China already the world biggest exporters and second largest importer.

It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

Cina has their own currency problems. None of the currency manipulators will be able to sustain it long term.

Yes. But not as bad as USD and EURO.

How events unfold in the future for all the currencies will be interesting to watch.

[theblacksquid]

China already the world biggest exporters and second largest importer.
It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

This is not what I want to see, but it is inevitably true.

Being a reserve currency is about trade and political stability. The Chinese is exporting so much to every country, it is strategically wise for every country to hold RMB as a reserve to stabilise exchange fluctuations. The middle east has always wanted to factor the dollar out of oil prices. If China buys enough oil from them, oil prices in RMB is not out of the question. That is going to be the tipping point.

Hopefully, we get past China's "red mirage", and for RMB not to become the new world reserve currency.

[Cicero2.0]

China already the world biggest exporters and second largest importer.
It will be the next country to dictate global commerce and trade and hence RMB will be the next currency.

This is not what I want to see, but it is inevitably true.

Being a reserve currency is about trade and political stability. The Chinese is exporting so much to every country, it is strategically wise for every country to hold RMB as a reserve to stabilise exchange fluctuations. The middle east has always wanted to factor the dollar out of oil prices. If China buys enough oil from them, oil prices in RMB is not out of the question. That is going to be the tipping point.

Hopefully, we get past China's "red mirage", and for RMB not to become the new world reserve currency.

Yeah the last thing we need is an even more economically predatory currency system to replace the current one. Bitcoin's lack of borders and neutrality make it a nice candidate for this role.

[ThomasCrowne]

US still has the strongest military in the world right now.

It will enforce rules and commerce until another country able to challenge it.


People thinking bitcoin can become a reserve currency without a military is delusional.

Most US soldiers do get paid in USD, right?  What will happen when the soldiers find out that they got scammed and their fiat is worth less than shit?

More than likely they will just have to suck it up and move onto more important matters like freaking secret wait lists at the VA to treat their post-traumatic stress syndromes sadly.  It really chaps my hide that these kids literally risk their lives advancing what has turned out to be obvious money-centric foreign policy.  If we american's on the whole didn't have such short attention spans there would have likely been some serious government/banking reform years ago.  Thank god for Miley Cyrus and the Beeb huh?

[IIOII]

The days of the dollar as reserve currency are counted. The US are weakened by the ongoing economic depression, excessive military spending and catastrophic foreign policy.

Reserve currencies before the dollar had backing by precious metals in addition to the economic and military dominance of the issueing nation. The USD is not backed by gold (anymore), it's solely dependent on its continued use as a trade currency. Now that the US loose influence and countries showing tendencies to use other currencies for trade, the demise of the reserve status of the USD will occur very fast.

[Ron~Popeil]

The days of the dollar as reserve currency are counted. The US are weakened by the ongoing economic depression, excessive military spending and catastrophic foreign policy.

Reserve currencies before the dollar had backing by precious metals in addition to the economic and military dominance of the issueing nation. The USD is not backed by gold (anymore), it's solely dependent on its continued use as a trade currency. Now that the US loose influence and countries showing tendencies to use other currencies for trade, the demise of the reserve status of the USD will occur very fast.

I agree. This is a good thing for the world and for the US. It was never the dollar that made us a world power. It does make us a target and allows our politicians to declare just about anything as being in our "national interest.' This declaration of something over seas being in our "national interest' is generally a prelude to military action.

[CryptInvest]

First territory of the United States more than the entire European Union. Second, Americans are expansive and enterprising nation and they are more powerful corporations. Therefore, the dollar - a reserve currency. The euro - no.