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"In recent years, several nations opposed to the dollar being the world's reserve currency have progressively sought to try and abandon it.
For instance, Russia and China have sought to operate in a non-dollar environment when trading oil. Both countries have also increased their efforts to mine and acquire physical gold if, or perhaps when, the dollar collapses.
OPEC kingpin Saudi Arabia is at the crux of the petrodollar."
How MUCH THEM CHINESE SECURITIES PAYIN????
4%.
I'll take IT!
Hmmmmmmmmmm.
Let me think about this for a minute. So what happens US dollar demand in the near term?
Well, REMEMBER, central banks are going to reduce their balance sheets as well in 2018 "allegedly".
There have been NO DOLLARS in circulation since 1933.
A dollar bill is not a dollar. (See Title 12 USC Sec. 411)
A unit dollar is a silver coin. (See Coinage Act of 1792, et seq)
It's hard to see why we should worry very much about the dollar being a reserve currency, or care overmuch about losing that status. What is the benefit of a bunch of foreigners having stacks of dollar bills in their closets? If they all set their dollar bill reserves on fire overnight, what would that mean for our economy? Precious little.
It's hard to see why we should worry very much about the dollar being a reserve currency, or care overmuch about losing that status. What is the benefit of a bunch of foreigners having stacks of dollar bills in their closets? If they all set their dollar bill reserves on fire overnight, what would that mean for our economy? Precious little.
Well, it would be highly inflationary for the USD. When countries purchase our securities and/or demand dollars, it raises the value of the dollar.
Without that demand, no one will want the dollar. That means, all the proposed spending programs that the government institutes will be impossible to carry out.
Nobody around the world will want dollars.
This wouldn't be a problem if the US was 100% self-sufficient and decentralized, but it's a bit too late for that, don't you think?
There was no national agenda. We are too divided. It's too late to do anything substantial now. I'm sure it will take a long time though before it happens.
Maybe a decade?
I don't really know. No idea on the timing, but this does confirm that this will happen, unless you believe the lies about the US overtaking Saudi Arabia and becoming the world's biggest oil producer for YEARS to come.
Although Saudi Arabia's reserves are drained anyway. Why else do you think there is PANIC going on in the royal kingdom?
Well, it would be highly inflationary for the USD. When countries purchase our securities and/or demand dollars, it raises the value of the dollar.
So the Fed will have to raise rates. Not a big deal. It's deflation that's difficult to address; monetary inflation is basically not a problem with a central bank.
the fed raising rates is no guarantee investors will raise rates on the bond side of things . yield curves can just flatten and invert .
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