Loading ...This one is for Northstar
since I can’t post this photo in the reply to Northstar’s post about the U.S. dollar, I’m posting this with a photo. Yes, the U.S. is in the top 10 of countries with a lop-sided debt to GDP ratio. To which one might reply, so what? Most folks here are well aware that the U.S. dollar is literally worthless, but that does not stop those in power from doing what they do best: spend us into oblivion. I still cannot get an answer to this question: if they abandon the dollar, where will they put their money? Will they conduct international trade in Mexican pesos? The EURO (as if anyone can make sense of the value of that myth?) I know, the Russian ruble!! It is all one big con game, there is no currency backed with anything other than law and guns, and until someone unseats the U.S. dollar, or someone brings out a gold-backed currency, the dollar is it for the time being. IMHO, all charts aside, all cycles aside, all feelings aside….. I do believe that at some point in time, we will indeed hit the tipping point and the worldwide depression will descend upon us. But the charts also paint a picture of a possible rally to new highs in the markets, in what is likely a final mania peak. I would not want to be betting against that. sorry for the ramble…chart below is for 2018
Hi Silverboom. I don’t think it’s likely that there will be an overnight abandonment of the US Dollar as reserve currency. I see it more as a steady move away from the US Dollar in international trade – a gradual loss of the Dollars significance. You don’t need to look very far to find evidence that the process is underway…
https://seekingalpha.com/article/4164925-china-ramps-threats-u-s-dollar-reserve-currency
https://uk.reuters.com/article/us-global-dollar-reserves/commentary-u-s-isolationism-casts-cloud-over-dollars-reserve-currency-dominance-idUKKCN1L70TF
https://mises.org/power-market/growing-list-threats-dollar
https://www.dukascopy.com/fxcomm/blog/?action=post-show&post_id=346&language=en
If you study the DXY chart going back to the 1970’s, this ‘fading of the dollar is pretty obvious. The index peaked at around 160 three cycles ago, 120 two cycles ago and 105 in this latest cycle. I fail to see how anybody who can read a chart can fail to see this. It’s literally there in black and white in front of our eyes.
Yes, I would agree with that assessment. The decline in the usage of the U.S. dollar as the world’s reserve currency is a slow and steady process…until it isn’t. The ones creating work-arounds already know that the U.S. is bankrupt and they are holding what will be in the world’s eyes one day, worthless paper – or, in computer terms, worthless digits.
“…U.S. dollar is literally worthless…” Kinda lost me on that one.
Simply a matter of fact. The U.S. dollar has no intrinsic value, it is merely paper with ink on it. There is nothing physical backing it up – you can only exchange it for paper at the government. It is essentially worthless, commonly known as a con-game or a ponzi scheme.
When a government finally falls back on printing currency to pay the interest on its debt, people will flee that currency – flee to hard assets. Anything might do – land, oil, metals, agricultural products, antiques, art, medical supplies, guns, ammunition… In short, they will hoard anything of value, anything other than the depreciation currency. And confidence (in the currency) once lost is very difficult to restore.
Like it or not, that time is approaching. When is zero hour? No one can say, but the course is set. The choices are a financial collapse now, or a much more devastating collapse later. All of the PTB are afraid to take the medicine on their own watch, so later it is.
We make ready. And we wait.
Agree with all this BUT the Dollar will be last to go not first !
I’m not sure I agree with that Fully. It’s likely that there will be several other gold-backed currencies by then. China has been building massive gold reserves for a very long time for this reason. I expect a coalition of countries which may include Russia, India, China, Asia, Iran, to have a sound currency ready to go. There are many countries on the list I posted, whose currency has less than 90% debt to GDP, so they are under no threat. The US is leading the way in debt accumulation and are going to ‘hit the wall’ well before the rest of us.
The world’s reserve currency is always the last to go.