Quote:
Originally Posted by Angry Jew Cat
No no no, out entire life as we know it depends upon the US dollar being the world's reserve currency!
Now I'm not going to profess to being an expert in world economics, but the comment did interest me enough to go do a little googling. From what I've seen, we might already be not too far off this happening. From what I managed to search up and read, the top nations in the world at the G20 have all expressed their dwindling faith in the US dollar, and suggestions have already been made by many to switch to special drawing rights, and many even the Chinese yuan.
Again, I'm not expert on the subject, but this leads me to ask the question, "If this would be so incredibly devastating to our lives, why are so many of the world's other powers supportive of the idea? And who exactly is it bad for?" Seems a little to me like that american "We ARE the world" attitude is shining a little with that comment...
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it is much closer to happening than most people realize. It will not come in the form of the world bank stating that it has changed its policy or anything like that. If/When it happens it will come in the form of more and more countries stating that they are going to be buying / selling their oil in something other than dollars
right now there are only a handful of countries that buy and sell oil in euros, that will change soon enough. iraq decided they would start dealing oil in euros... that happened about 6 to 9 months (not sure exact dates) before we invaded them.
the first thing we did was reverse that policy.
a lot of people argue that we invaded iraq for its oil. that is not true. we did not get any extra oil from iraq, but we did force it to sell its oil in u.s. dollars
the reason foreign countries are forced to keep large inventories of dollars is so they can buy oil. they are definitely not keeping dollars because its a good investment, that has not been the case in a long time