US dollar status as world’s single reserve currency will end by 2025

yup, this is true!

 

Excellent. Then we can float the dollar against the Yuan for a little payback.

 

As the treasury complies with the orders of the Federal Reserve Bank, continuing to print more money and dilute the value of the currency, the US dollar will eventually lose its special status as the primary world reserve currency. When this happens, the value of the US dollar will plunge as all the different world reserve banks try to unload all their rapidly depreciating US dollar reserves. The inflation rate will spiral out of control within a short time, in a phenomena similar to a stock panic.

Usually the equilibrium shift is much more rapid and unexpected for the large-scale market devaluation of assets to stable market levels than the steady rise in market price that began. Policy makers seem so concerned about devaluation in the short-term, but the real threat, that looms somewhere in the future, is sudden uncontrolled inflation. Unemployment and falling wages can only cause so much deflation. Once housing prices are allowed to fall, Americans will start to see some significant inflationary pressure, because around half the reserve assets held by the central bank (Federal Reserve) are residential mortgages. To a large exent, the value of the dollar is the price of housing.

 

Many tip top analysts take that view and any time from 2015 is distinctly possible .
The next 18 months ---when Europe and the States "burn" economically and financially --- will clarify matters and start to give the wider audience a fuller perspective .

 

The value of the dollar is actually declining, and this will only accelerate, but there are not many other options. So it is more likely that the US dollar will not lose its reserve status all at once. Central banks might start having more interest in Canadian and Australian dollars. Over the long term, this could potentially provide a boost to these countries economies and help them satisfy the outside demand for expanding their currency. But it could result in a bubble in the distant future. Sudden withdrawal of investments, for example, is believed to have sparked and contributed the Thai financial crisis.

 

The problem with using smaller currencies like the $AUS or $CAN is that there is not enough of them. They are also subject to other practical constraints like the problem of exchanging them through other currencies to facilitate trade plus they can be more volatile in their exchange rates than more widely used currencies.

Most central banks keep some reserves in the currency of their largest trading partners. Once OPEC begins accepting currencies other than the $US in trade for oil many countries will not see the need to keep so many $US in reserve but as long as they do it will maintain substantial value.

 

we've been abusing it's reserve status for longer than you can remember .

 

it wouldn't surprise me if within a few years there is some sort of official currency devaluation!

 

What about the currency crisis you kept telling us we'd have in 2011 or 2012?

 

If I was a sovereign I would no more keep all my reserves in any one currency than I as an individual would keep all my retirement money in the stock of one corporation.

I doubt the dollar is the only reserve currency. I'm sure the Euro is also. The value of Euro's held is just converted to dollars and then we say the value of the reserves is X billion dollars but the reserves probably are not all dollars.

 

and thats when the official currency devaluation will happen.....2012 or 2013 sure it could of even hit in 2011 but since it did not then 2012 to 2013

 

actually many nations are making deals to trade in their own currencies.....the writing is on the wall for an end to the US dollar as a reserve currency!

 

Sure, right about when gas hits $5/gal like you assured us would happen last summer.

 

you do realize that crude oil just hit a record high for the month of january...how high it will go by summer depends on many factors but the its obvious that things dont look very good......not that I expect ignoramuses to understand LOL

PS never in january has crude oil been this high....the december to march is traditionally the slow period!

 

To be fair - bacardi lives in Canada and gas is over $5 per gallon (Imperial gallons used in Canada) in the country he lives in (apparently) as we speak.

http://www.hamiltongasprices.com/

1 Imperial gallon equals 4.55 liters.

 

also iriemon doesn't understand that even the most thought out predictions can be changed if a government manages to pull a rabit out of the hat and delays the inevitable! It will eventually go to 5 dollars and beyond...Bernacke can only hold things back for so long!

 

I didn't realize that. When in January did it go over $145 bl?

 

Except he wasn't talking about Canadian dollars when he assured us gasoline would hit $5/gal by last summer.

 

you missed my point ( what else is new LOL ) this is a january high....not an all time high.....so this is setting precedent ....will it hit a record high in july? maybe and maybe not...it all depends on what uncle ben does and if there is a war with iran or not!

 

sooner or later it will go to 5 dollars ...6 dollars and beyond...give it time!

 

Perhaps the disbelievers should acquaint themselves with the Oil tipping point proposition --- this posits major short term increases REGARDLESS of what Mad Ben does or whom America decides to invade .

 

I have no doubt it will get to $5 gal someday. I have no doubt it will get to $10 someday.

You assured us it would happen last summer.

What's your point?

 

I guess my point is that you just dont understand the consequences of wreckless Ben's behaviour....I really thought it was heading for 5 dollars but it peaked at 4.25 I think....so I was premature....lets see what happens this time around

 

I don't think it got above $4 all summer when you assured us it would get ot $5/gal.

So who doesn't understand the consquences?

 

not sure where you are from but I travelled to several states where the price of premium hit close to 4.50