Comment: Let's say China makes that move. It won't kill the dollar.

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Let's say China makes that move. It won't kill the dollar.

Here's why:

The dollar is NOT the world's reserve currency.

The U.S.A. isn't using the dollar even. We abandoned it over a slow period from the 1850's till 1965. "Officially" one could say we abandoned it in 1873 and the rest was just time for it to completely work itself out.

Now, what the U.S.A. and the world HAS been using recently is what are known as Federal Reserve Notes. They are mere pieces of paper - a banker's promise which isn't worth the paper it's written on.

THAT is what is the "reserve currency" of the world - nothing but banker paper.

This is a very dangerous thing to do and as we well know, it cannot be sustained for much longer.

The solution is simple - return to using the dollar as our currency.

A Chinese "gold backed" piece of paper will never displace the dollar in the market and gold cannot compete with a silver currency.

Why?

Because gold is too impractical for every day purchases.

Most of it is in the hands of the elites anyway.

But the elites aren't the ones conducting 99.99999999999% of all transactions.

The common man does that. And silver with its more convenient relative value for size, is the currency most suited to every day transactions.

No, gold will never replace silver. Neither will gold-backed paper.

But it very well may displace the un-backed banker paper used by the U.S.A. and the rest of the world.