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China and Russia have called for the end of the USD as the world's currency. Two major players...
Is Obamacare and the Welfare State destroying everyone's wealth in the United States?
So here's the million dollar question:
What will replace the U.S. Dollar as the world's reserve currency?
Is Obamacare and the Welfare State destroying everyone's wealth in the United States?
So here's the million dollar question:
What will replace the U.S. Dollar as the world's reserve currency?
Posted in these groups: 
Economics
Economics
Posted 10 y ago
Responses: 7
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Some think it will be Bitcoin, SSG(P) (Join to see), but I think the dollar will be the world standard for a good long time yet. (Notice that you asked the million DOLLAR question!)
http://money.cnn.com/infographic/technology/what-is-bitcoin/
http://money.cnn.com/infographic/technology/what-is-bitcoin/
What the heck is Bitcoin?
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If a replacement would be selected, it is likely to be a basket of currencies and/or commodities. I believe it's less likely that a single currency would displace the USD... not without a major event that presents a tidal shift in global geopolitics.
A shift away from the USD would benefit many countries, so there will be continued pressure to do so. Unfortunately with the pace of US dollar devaluation, this is not longer an unthinkable event. If you look at the graph of the rapid rise in the US monetary base (essentially how much money the government is printing), it appears incredibly irresponsible and putting us on a disastrous long term path.
Image source: http://research.stlouisfed.org/fred2/series/BASE/
A shift away from the USD would benefit many countries, so there will be continued pressure to do so. Unfortunately with the pace of US dollar devaluation, this is not longer an unthinkable event. If you look at the graph of the rapid rise in the US monetary base (essentially how much money the government is printing), it appears incredibly irresponsible and putting us on a disastrous long term path.
Image source: http://research.stlouisfed.org/fred2/series/BASE/
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SSG(P) (Join to see)
A disaster as in massive inflation and further devaluation of the USD...a country cannot keep printing money without backing it up....It a is quite scary.
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The Euro has problems of its own that has had some countries wanting to dump it. China has their own economic problems now that has kept them from this same push that was made in 2009-2010. Russia wants this to destabilize us which will put them at odds with China since they're still dependent on us for most of their international trade. So at this point I don't see anything replacing the dollar, and looking at currency trends the regained strength of the dollar based on the weakness of other foreign currencies has driven oil prices down which has benefited us in the short term.
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Cpl Ray Fernandez
The value of the dollar is still tied to gold, the value of gold shot up in 2008/2009 based on the weakness of the dollar then. Gold currently is $1,177.81 per ounce down from a peak of $1,869.90 peak on Sept 05, 2011.
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