It's happened: Dollar Loses Reserve Status
Posted October 14th, 2009 by zenpiper
This is a death blow to the U.S. dollar, thanks to Bernanke and the FED chairmen who preceded him - notably Alan Greenspan, who allowed cheap credit years ago, and practiced unsound financial policies.
Ron Paul, Peter Schiff, and others predicted this. It's happened and there are no more quick fixes that I can see.
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Oil is still being sold in
Oil is still being sold in dollars. The dollar is still the world's reserve currency. It won't be for long, but it doesn't seem accurate to say that it has lost the reserve status.
lolol
The dollar is going to be the world's reserve currency for AT LEAST another 10 years.
I'm sorry to say this, because fundamentally the dollar is garbage, but what is the alternative? The philosophy on gold has not been changed by the majority, so it's out for now (hopefully this trend towards gold changes after then next correction in PM prices). What else?
The Euro? The Euro will collapse even faster than the dollar when it comes down to it because it is the ultimate in central planning, making it even more unsustainable (USD manages 1 economy, Euro tries to manage a dozen regional ones - IMPOSSIBLE long term).
The RMB? Maybe someday, but not yet - far too much malinvestment is going to have to be corrected in China and the banking sector there still has all of the horrible assets they bought from the US on their books. They haven't even written their value to market!
The Pound? No, UK is in at least as bad or worse fiscal shape as the US is, and it will never be the world reserve currency again.
SDRs? Again, this is the ultimate in central planning, which is unsustainable long term.
Perhaps the chinese currency will become world reserve in 20 or 30 years, but I am more inclined to believe that some country's currency (possibly even USD) will again be commodity-backed. The fiat experiment will be ended (remember this is the only time in HUMAN HISTORY where only the law has given medium of exchange value).
But for now, the USD will still stay reserve currency - there really is no viable alternative.