US dollar to lose its reserve currency standings? Are you dumping the dollar?

The problem (used loosely) really isn't the debt we currently have because it's at close to 0% interest. It's that the debt is almost all short term and a big chunk of it (multi trillions) become due each year because we're riding the rates.

Each percent rise adds another trillion to the debt. print more paper. rinse. repeat.
 


Moxie said:
The elephant in the room has yet to be mentioned. It was the US military that was partly responsible for the dollar becoming reserve currency in the first place, and that military is a lot more powerful now.


"Foreign Policy is not missionary work... who controls the energy can control whole continents..." - Henry Kissinger
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QFT.
 
Better than this, convert your money into chinese yuan... And Wait few years...



geomark said:
When I moved to Thailand and moved a lot of my cash here I didn't expect that to be a stellar investment, just a means to live comfortably here. But after a 30% rise in the Thai baht versus the US dollar, a 40% gain in the Thai stock market, and a 1,000% gain in the value of my home, at the same time the U.S. housing market and overall economy have headed steadily down, I'm looking like an accidental f'ing guru.

The direction of the dollar is pretty obvious so I'm accelerating moving out what I have left in dollar denominated investments. Problem I have is the retirement accounts. I'd take a big hit if I cashed them out now, but maybe that's a smaller hit than waiting until retirement age when the dollar will be worthless. I'm thinking I might max out SEPP to try to get some of that out sooner rather than later,

Short answer: Yes, dumping the dollar.
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Bought some of these to give out as christmas gifts and as a reminder of the perils of the fed printing all the money they want.

Inflation-50-trillion.jpg
 
libnfre010 said:
All we need is for the "oil" countries to decide they'll deal with a currency other than the dollar and we're foked.
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Yeah that worked out great for Saddam when he tried to switch to the euro. He got hung like a cockroach after all of a sudden he was a horrible terrorist even though he was able to stay in power for years and years after genocides and religious persecution of Iraqis. However once Hussein decided to go against the petrodollar he was eliminated shortly thereafter. So to think oil countries have that choice of freely deciding which currency to trade in is underestimating the forces which carry out these orders.
 
geomark said:
And China will be THE super power. Learn Mandarin so you can understand what your new overlords are saying.
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Nah.

When the US was the undisputed global superpower without any competition, people in other countries still got rich, built big companies etc.

China rising and becoming relatively far more powerful than it used to be doesn't mean the US (+West) has to sink.
 
This question has been posed as if the US dollar not being the reserve currency is a bad thing -

Um, if the FED couldn't print money then there would be no inflation to pay the governments debts - everyone (except the government) would be better off.
 
furfing said:
Better than this, convert your money into chinese yuan... And Wait few years...
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I'd check your logic again if I was you -

China will never be able to stop lending money to the US. China needs the US to buy it's goods. The US borrows the money from China, buys their goods then prints some more money to pay for it.

Of course this is going to fall over eventually in regards the US, but it'll be China left holding their dicks so to speak.

I don't want that to sounds like a US v China thing, it's not and I think both countries are fucked if they continue on this path but who is worse off, the bankrupt or the creditor?
 
Exploding federal budget + exploding federal deficits + Bernanke + unfunded federal liabilities = GOLD FTW

Use dips to buy more. As Marc Faber recommends, buy some every month. Dollar cost average.
 
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