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China, Australia, Japan, Russia, Iran, India and Brazil have ditched the US dollar: are we witnessing the dollar's last days as world reserve currency?

ZERO 2013/04/02 07:47:00
Yes, the dollar is losing it's status as 'world reserve currency'.
No, the dollar's status as 'world reserve currency' is safe.
Undecided
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Australia becomes the latest country to join a growing list of major economies which have bypassed the US dollar in international trade agreements.

This latest development in global currency relations should come as no surprise to those who have followed our series on China's slow but certain internationalization of its currency over the past two years. To wit: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees", and "The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap."

And while previously the focus was on Chinese currency swap arrangements, the uniqueness of this weekend's news is that it promotes outright convertibility of the Yuan: something China has long said would happen but many were skeptical it ever would. That is no longer the case, and with Australia setting the precedent, expect many more Asian countries (at first) to follow in Australia's footsteps, because while the developed world is far more engaged in diluting its currency as a means to spur "growth", Asian and developing world nations are still engage in real, actual trade, where China is rapidly and aggressively becoming the world's hub.

Read More: http://www.zerohedge.com/news/2013-03-31/thanks-wo...

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  • Jerry 2013/04/02 23:47:26
    Undecided
    Jerry
    +1
    Good. It's time to end petrodollar wars. Foreign bankers printing dollars and charging interest.
    USA should do what Island did. Tell the banksters, we are not paying.
    Dismantle the FED.
  • ZERO Jerry 2013/04/03 00:17:47
    ZERO
    +1
    Presidents who do that usually end up dead. There have been 3 that I'm aware of, Lincoln was the first, issued 'greenbacks' (shot in the head), Andrew Jackson was the second (survived multiple assassination attempts, died of old age, legend has it his last words were "I killed the bank"), Kennedy was the third, signed executive order 11110 to begin dismantling the Fed (shot in the head).
  • Jerry ZERO 2013/04/03 01:16:16
    Jerry
    +1
    Exactly! It took them 100 years to regroup after Andrew Jackson.
  • Dimitri... ZERO 2013/07/29 18:02:40
  • rocat 2013/04/02 22:44:10
    Yes, the dollar is losing it's status as 'world reserve currency'.
    rocat
    +1
    it is not losing...
    it is being systematically destroyed-

    a plan long in the doing-
  • SIMPATTYCO 2013/04/02 20:50:24
    Yes, the dollar is losing it's status as 'world reserve currency'.
    SIMPATTYCO
    +1
    Why else is the government planning for riots and insurrection...????? THE WORLD AS WE KNOW IT is coming apart at the seams and looks like Machiavelli was right... Change always begins with chaos
  • Jorgy~PWCM~JLA 2013/04/02 20:04:26
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Jorgy~PWCM~JLA
    +1
    And with this admin in place it is probably going to be going into freefall soon.
  • blissful 2013/04/02 18:31:59
    Undecided
    blissful
    +1
    So if we decide to visit one of these countries. How will we be able to purchase anything with American money?
  • ZERO blissful 2013/04/02 20:46:16
    ZERO
    +1
    You will have to buy local currency at whatever the exchange rate is. More importantly, you will have to buy local currency to buy products and resources from those countries, and if those items are purchased on credit, that money will have to be repaid in local currency. In other words, printing money to pay off debts will no longer work.
  • blissful ZERO 2013/04/03 01:47:13
    blissful
    +1
    Well that really sucks!!
  • Kronan_1 2013/04/02 14:22:38
    Undecided
    Kronan_1
    +1
    LIke, Confederate money had? Confederate money
  • Maynard 2013/04/02 12:46:37
    Undecided
    Maynard
    +1
    These Countries no longer use the US DOLLAR.

    Most African Countries are now run by the Muslim Brothehood.

    Many Middle East Countries are run by them now OR in the process of getting there.

    Many new Irans.


    Russia LAUGHS at us, we went too far LEFT and even they know it.



    ALL THESE THINGS HAPPENED UNDER hillary as Secretary of State.

    (CONDI RICE WAS WAY BETTER.)


    WHO ON EARTH WOULD WANT hillary as President?
  • Kronan_1 Maynard 2013/04/02 14:24:08
    Kronan_1
    +1
    How could anyone think Airhead Hilliary could be a good President?
  • alan.peters.737 2013/04/02 12:18:57
    Yes, the dollar is losing it's status as 'world reserve currency'.
    alan.peters.737
    +1
    Other countries are seeing the writing on the wall. The fed has kept interest rates too low fo too long with little overall postive affect. One that has money in the bank gets little gain interest wise on the money that they have. Banks aren't readily lending even though they may have strong capital reserves due to volitility in the market. Job growth has been amemic.....I could go on but.....that is good for now.
  • David (oYo) 2013/04/02 11:37:14
  • La 2013/04/02 11:32:15
    Yes, the dollar is losing it's status as 'world reserve currency'.
    La
    +1
    China will become the world power eventually.
  • Chancy 2013/04/02 10:55:27
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Chancy
    +1
    this is not obama's fault
    his hatred of America could be the problem with the greenback's falling out of favor
  • Kronan_1 Chancy 2013/04/02 14:25:39
    Kronan_1
    You still defending the indefensible? Really?
  • Chancy Kronan_1 2013/04/03 10:24:10
    Chancy
    obama is the most frugal president ever wouldn't you agree
    still blind you are
  • Kronan_1 Chancy 2013/04/03 13:39:45
    Kronan_1
    +2
    Denying tours of the WH. Cutting services . All the while having million dollar vacations. Obama and family spent 1,400,000,000 dollars last year on VACATIONS. The whole Royal Family together only spent 57,600 dollars on leisure. How is he frugal?

    "Obama took 13 vacations in his first term, which spanned all or part of 83 days. But they have been much more lavish than Bush's. His annual vacations to Hawaii alone have cost taxpayers at least $20 million during his first term. In 2011 alone, Michelle Obama may have cost taxpayers $10 million on vacations herself. Obama's fantasy golf outing this year cost local law enforcement in Florida a reported $78, 205.

    Bush was content to work from home during his vacations. And for doing so, the mainstream media tagged him as lazy and disinterested. The Obamas gallivant around, making plenty of "time for fun," and the mainstream media does not call them out for wasting taxpayer dollars or even for the terrible "optics." "
    http://www.breitbart.com/Big-...
  • Chancy Kronan_1 2013/04/03 13:47:30
    Chancy
    +2
    you missed my sarcassism, my response was only sarcassim
    obama and frugal, should never be in the sentence
  • Kronan_1 Chancy 2013/04/03 13:51:05 (edited)
    Kronan_1
    +2
    I did . Shame on me. The written word leaves a lot to be desired.
  • Chancy Kronan_1 2013/04/03 14:00:16
    Chancy
    +1
    no harm done, I think we both smiled and thought wtf LOL
    change of pace here, I read about a woman in italy who lived liked over a 100 years, she was asked her secret, part of her answer was "good wine everyday"
    Being American, I am waiting for noon, cause thats when I take a shot of good wiskey, everyday.
    just one
  • Kronan_1 Chancy 2013/04/03 14:15:02
    Kronan_1
    +1
    I've heard red wine has natural anti-oxidants and can be good for you.
  • Chancy Kronan_1 2013/04/03 14:32:39
    Chancy
    +1
    thats what the "experts" say
    they also say, it's good for couples to sleep in different bedrooms
    they must not be wiskey drinkers
    wiskey drinkers know that having the wife sleep in a different room
    thats 2 doors the husband has to go thu, incase some SOB decides
    taking something that does not belong to them
    Goverment is expert at everything, just look around the country for proof
  • Kronan_1 Chancy 2013/04/03 14:34:37
    Kronan_1
    +1
    I can't drink whiskey. Like it too much. So instead ,I just leave it at the store.
  • Chancy Kronan_1 2013/04/03 14:39:29
    Chancy
    +1
    that there is a fine choice
    a fine choice indeed
  • Illuminatti 37° 2013/04/02 10:46:46
    Undecided
    Illuminatti 37°
    +1
    Not sure, but one thing appears behind the planned financial attack on the dollar, the wish by the International Banking Mafia/Cartel that owns the Federal Reserve to make a case for a global currency unit. Such a move would make it much easier for them to manipulate economies.

    It will take ridding the world of the Federal Reserve Banking Scam to prevent a collapse of the dollar on the world market. Likely too late already. The world now understands that the US Fed prints fiat currency designed to grow DEBT. Where the eight banking families of the International Banking Mafia/Cartel don't hold sway, change is not only possible, it is coming.
  • Mark P. 2013/04/02 10:41:41
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Mark P.
    +1
    Progressives are fixing to learn that debt does matter. The only reason why we haven't seen our economy collapse is because the dollar was the universal currency. That is changing.
  • Jaguar 2013/04/02 09:49:09
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Jaguar
    +2
    Without any gold to back up the amount that's printed, it's all just... Paper
  • Radlad 2013/04/02 09:44:26
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Radlad
    +1
    ......and we have obummer to thank for it along with the rest of the commies er I mean er liberals. Yes we have liberals in the repugnantcan party as well and they ain't helpin'...
  • Pedro Doller ~Inc. 2013/04/02 09:15:04
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Pedro Doller ~Inc.
    +1
    Without going off shore you can open an Foreign Currency account with Everbank.

    As for printing money, thats one way of paying those T-Bills. Make the value next to nothing and the debt is then paid off. The problem with China, is they want hard assets and it looks like they may have gotten them. When Bernake and Paulson threatened Martial Law (which they appear to have followed through on) because China threatened to take possession of troubled assets in the mortgage backed securities they bought.

    The US dollar is most likely done (at least the Federal Reserve Note), just need to keep the Chinese out of the neighborhood. Something telling is that Hank Paulson now lives in China.
  • Pedro D... Pedro D... 2013/04/02 10:03:30
    Pedro Doller ~Inc.
    +2
    Boris Yeltsin may have left us a blueprint for the solution. When the Soviet Union collapsed, it's member states seceding, the Soviet Ruble Zone also collapsed. Each member of the FSU then issued there own currency. Now the Russian Ruble has replaced the Soviet one in Russia. Along with issuing the new currency, many of the old Soviet debts were considered null and void. And with no Soviet Union to go after there wasn't much recourse. Some of the debts were honored like some of Brezhnev's Soviet bonds (maybe Putin will Honor them or maybe not - Brezhnev's Soviet Union no longer exists and some of that debt (25 billion Soviet Rubles) could possibly be passed on to resource rich countries like Kazakhstan and others).

    The US solution is to disband the Federal Government, or at least all States and Territories withdraw with the exception of DC. That will remain as the remnant of the US of A. The States would then issue there own currency or create currency zones. All backed by hard assets. As they would no longer be part of the United States, they could choose to not be responsible for the debt. For that matter all the laws, taxes, treaties involving the Federal Government would be the remnants problem. States could then reorganize in a sound way..
  • littlebuffalo55TBA 2013/04/02 08:53:21
    Undecided
    littlebuffalo55TBA
    +2
    This in part assumes China doe not have an economic collapse. Australia is not really considered significant (although their economy is doing well) buy the other Asian markets much to their chagrin. In theory though that the Fed is printing dollars with no real value is a significant problem.

    Note that there is no mention of the Saudis, Singapore or South Koreans following suit.

    This potential without a US collapse would negate that.



    So as our dollar becomes of less value so could the artificial means the Chinese economy have put in place to make an economy on a world scale. Is the Yuan really a viable free floating currency yet? We shall see?
  • lost 2013/04/02 08:51:03
    Yes, the dollar is losing it's status as 'world reserve currency'.
    lost
    +1
    that's Cause we are smart Biatches.hahahahhahahahaa go Aussies...........
  • Annie~Pro American~Pro Israel 2013/04/02 08:35:34
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Annie~Pro American~Pro Israel
    +1
    Soon, the American dollar will be no more.
  • Haole 2013/04/02 08:08:38
    Yes, the dollar is losing it's status as 'world reserve currency'.
    Haole
    +2
    Is someone surprised by this?
  • deidara.trueart 2013/04/02 08:07:27 (edited)
  • LADY LIBERTY SILLY WORDSMITH 2013/04/02 07:54:06 (edited)
    Undecided
    LADY LIBERTY SILLY WORDSMITH
    +4
    DARN THOSE COUNTRIES. INGRATES GO TO HELL. THEY MAKE RICH

    ON US DOLLARS, THEY SUCK THE US DOLLARS BLOOD DRY! EXCEPT,

    AUSTRALIA, CHINA & OTHERS LIVE OFF US TAXPAYERS FOR A LONG TIME.

    USA IS STUPID TO GIVE THEM MONEY.

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