Dollar on the road of extinction as reserve currency

[oyarde]

Oh , I have other things , the usual crap , stocks, bonds , in the end , it is only paper , ask me what my pre Govt GM stock is worth , lol.

[oyarde]

It could be said that way.

But don't forget just one thing, Russia in the 90's has tried to replace dollar as reserve currency too, so I think she specifically waited for the opportunity given by your government and the Federal Reserve to destroy American economic hegemony.

Basically, I have nothing against the U.S. however, I'm not glad that countries like Russia and former Soviet Union states are rising again.
My state is her only alliance in Europe and believe me, their principles are still extremely racist and fascistic. Same in my country unfortunately.

Eastern world leaded by China as communist country and Russia as fascist one, it scares me a little bit, so I'm not feeling a lot save for the future.



If it happens that scenario, what will be the consequences for the United States?

Will the standard of living of American citizens drop drastically once the dollar loses his reserve currency status?

Will that lead to dramatic budget cuts?



As I can see, you all agree that a bad future of US dollar is inevitable...



What do you mean by that?
(if it's not a secret of course)



So, you think that US will become a new fallen empire, like UK?

Ivana.

I only keep secrets from my wife , she has no real idea we are not poor. Where she grew up , if you had shoes, went to school , all the acreage was plowed in the spring, life was good , LOL , for real.

[heavenlyboy34]

I only keep secrets from my wife , she has no real idea we are not poor. Where she grew up , if you had shoes, went to school , all the acreage was plowed in the spring, life was good , LOL , for real.

So you haven't told the wifey about your Great Kingdom?

[oyarde]

So you haven't told the wifey about your Great Kingdom?

She sees it , probably thinks we owe more on it, you know, those 30 year loans & such

[oyarde]

She will out live me, figured I should make sure I leave her something

[enoch150]

If it happens that scenario, what will be the consequences for the United States?

Will the standard of living of American citizens drop drastically once the dollar loses his reserve currency status?

When the world tries to dump dollars, they have to do it by purchasing US goods and assets and refusing to sell us stuff which they produce. The US trade deficit will vanish and the US will become a net exporter, which many Americans will foolishly celebrate. But all that buying of US goods and the inability to buy foreign goods will drive domestic prices sky high. American's standard of living will certainly drop. The rest of the world may see rising unemployment as US consumption falls, at least until resources are reallocated, and prices outside the US will be volatile, but should not sky rocket like they will here.

Will that lead to dramatic budget cuts?

Eventually, yes, but after the rest of the world rejects the dollar, the Federal Reserve will just print money to cover the deficit, which will further fuel price increases. Americans will continue to have faith in dollars for a time after the rest of the world ceases to do so, and the habit of issuing debt and printing money to fund deficits will not be broken so easily. Serious budget cuts won't happen until the dollar dies in America.

So, you think that US will become a new fallen empire, like UK?

Not unless states begin seceding and America breaks into several different countries. As a whole the US has to many resources, to much infrastructure, and to much military hardware to fall to far permanently. The crash will be very hard, but the US will likely recover with shocking speed. Hopefully we'll have a better government on the other side or we'll just end up doing it all over.

[Carson]

I think the true enemy of the dollar is the dollar itself.

Whenever they print some up out of thin air it is counterfeiting the money supply. They don't create anything that adds to the wealth of world, it just shifts the property lines of the worlds wealth over to them.

All of the games with printing cash and then printing up bonds can't change the fact they are ripping everyone off off, not only of our savings for the future, but it is stealing our present.

People are starting to catch on. It is pretty obvious. Then when you start to pull out of the haze things become really clear. We are an deep trouble.

No matter how much honest hard earned money we can come up with to build our world the way we want, others can fire up the fake money presses for what ever it takes to dictate their will!

"others can fire up the fake money presses for what ever it takes to dictate their will!"

[kety]

From today, Serbia and China are doing trade without dollar.

[Athan]

Therefore, I would like to know your opinion about future of the dollar and his geopolitical influence? Will US be able to succeed to save their currency in present form, precisely, will be able to regain its former glory or the dollar will continue to fall down?

Best wishes,
Ivana.

The Fed has already failed trying to transition to Special Drawing Rights using the IMF. Now that B.R.I.C.S. block is aware of the value of gold the geo-political influence of the US will wane and will only be held up by US forces for a time. I want to see what 2015-16 brings, once the BRICS block trade agreements are finalized we may see how investors react. Will a flight happen in that time frame or just before is what I'm interested in.

[oyarde]

The Fed has already failed trying to transition to Special Drawing Rights using the IMF. Now that B.R.I.C.S. block is aware of the value of gold the geo-political influence of the US will wane and will only be held up by US forces for a time. I want to see what 2015-16 brings, once the BRICS block trade agreements are finalized we may see how investors react. Will a flight happen in that time frame or just before is what I'm interested in.

I can only surmise, 2016 - 2018 , dollar is toast .