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Ponce
3rd March 2011, 08:13 AM
You can wear the same clothes only so many times before it falls apart......time to buy new clothing.
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Thursday, March 3, 2011

Why the Dollar's Reign Is Near an End.

Barry Eichengreen
The Wall Street Journal

The single most astonishing fact about foreign exchange is not the high volume of transactions, as incredible as that growth has been. Nor is it the volatility of currency rates, as wild as the markets are these days.

Instead, it's the extent to which the market remains dollar-centric.

Consider this: When a South Korean wine wholesaler wants to import Chilean cabernet, the Korean importer buys U.S. dollars, not pesos, with which to pay the Chilean exporter. Indeed, the dollar is virtually the exclusive vehicle for foreign-exchange transactions between Chile and Korea, despite the fact that less than 20% of the merchandise trade of both countries is with the U.S.

Chile and Korea are hardly an anomaly: Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars. What's more, what is true of foreign-exchange transactions is true of other international business. The Organization of Petroleum Exporting Countries sets the price of oil in dollars. The dollar is the currency of denomination of half of all international debt securities. More than 60% of the foreign reserves of central banks and governments are in dollars.

The greenback, in other words, is not just America's currency. It's the world's.

But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.

I believe that over the next 10 years, we're going to see a profound shift toward a world in which several currencies compete for dominance.

The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.

http://www.activistpost.com/2011/03/why-dollars-reign-is-near-end.html

sunshine05
3rd March 2011, 08:31 AM
I can't remember where I read it, yesterday I think but more countries are beginning to use other currencies. I think we will see more and more of that. Then we'll have all these excess dollars in circulation that no one will want.

Ponce
3rd March 2011, 08:51 AM
One way to control the US currency will be of two different types of currencies.......internal and external...and to be able to make the internal currency into a external one only a miracle will make it be.

Ponce
3rd March 2011, 10:18 AM
Palani, WTSHTF coins (all of them) will retain their orignal value because they are made, and backed up, by the US government and not by the Federal Reserve.......I said this before and I stand by my words.

Ponce
3rd March 2011, 11:22 AM
LOL Palani........you are wayyyyyy ahead of me in your way of thinking because I think in simple terms... you are now thinking in terms of NWO and I for one haven't reached that point yet.

madfranks
3rd March 2011, 11:37 AM
stability of exchange rates, the stability of financial markets

I love how they created the problem in the first place, by destroying the international gold standard, under which exchange rates were rock solid stable. It's all the floating fiat monies which have created unstable exchange rates.