Quote:
Originally Posted by dyna mo
the US will disappear if the world replaces the dollar with the yen?
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Yuan (CNY) not Yen and you already know about this Dyna as we had a previous discussion where you were once again, as always, fully own3d...
If you look back in history, when the GBP was the reserve currency (and one GBP bought you 5 USD) and USD took over, the UK began its decline and actually today the US looks a lot like the UK did back then. The UK was over extended colonially, and the US is over extended militarily. Of course, both are terrible indebted today.
Technically, he is right about decline because the Reserve currency status is so crucial. Although I doubt US will disappear or at least, see the example of UK loss of super status - what happened was that the decline began not longer after 1900 and has continued ever since. However, the UK never disappeared - just fell from being No.1 (by GDP) to what it is today position No.6 - UK is the 6th largest economy in the world today.
It took a good 115 years to fall six positions.
That does not mean UK is totally irrelevant today and US would take a lot longer to move down the rankings, partly because the only country near it in terms of GDP is China (You can't include Japan because its a basket case). It's worth noting, as I pointed out in another thread that China has massive foreign currency reserves (another name for a Country's bank account):
https://gfy.com/fucking-around-and-pr...ked-china.html