Is the American Dollar really going away?

H

Hardatit

Recycles dryer sheets
Joined
Feb 7, 2015
Messages
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I'll be the first to admit that I am not the most informed person out there. I do not watch the news or much TV and really don't listen to much radio. I like Jim Rohn's saying of stand guard at the door of your mind.

Anyways, I couldn't help for this one to catch my eye. I got sucked in and ended up reading the entire article. Scary and grim, you betcha. I've always been on the wagon of keep investing and stay the course but this article sure makes me think different.

Just wondering what you guys think of this? Is there any truth to it or just hoax news?
https://www.askaprepper.com/death-of-the-dollar/
 
Of course it could happen.

If it does though, my pension, your Social Security, paper investments, crypto, and property rights not protected by a castle and moat are also in question.

Diversification and some spare canned goods are prudent, but spending a life prepping for the apocalypse isn't my kind of life.
 
Link seems to be invalid.

The American dollar will go away the day Pax Americana ends. If that happens, the world order as we know it now will be in serious turmoil without the stabilizing influence of American hegemony, and there will be a lot more things to worry about than which currency will replace the American dollar and what happens to our personal financial situation.
 
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I noticed the same thing, except in Great Britain. Then again, when we lived there, the pound was worth almost 2X the dollar, and tipping wasn't much of a thing. Haven't been back yet to test the waters of change.

Stormy Kromer said:
When I travel oversees everyone likes them. doubt it will change.
Click to expand...
 
No.
 
Linky, no worky.

IMHO the US Dollar will remain the world's reserve currency as long as we have a stable, productive, innovative society coupled with sound and reasonable governance.
 
frayne said:
Linky, no worky.

IMHO the US Dollar will remain the world's reserve currency as long as we have a stable, productive, innovative society coupled with sound and reasonable governance.
Click to expand...

You scare me, Frayne.
 
Sunset said:
Site seems flooded, or down.

OP - can you summarize what was said ?
Click to expand...

Sorry to post a busted link, I guess I caught the only window where the site worked.

It went into great detail, I'll do my best to summarize accurately. Basically it was saying this all has been in motion for years and when we pulled out of Afghanistan that really set the table for it to happen. Additionally, our country cannot repay the debt it owes. Saudi is worried we can no longer fullfill the security agreement between us and them. Our relationship with them is getting more and more strained. Saudi will partner with China on oil (their top customer) and Russia, basically killing the petrodollar. The main currency will then become BRICS and hyperinflation will start in the US making our savings and cash worth pennys. They said you'll trade a bag of cash for piece of bread. China will be calling the shots and we will no longer be the world superpower. Millions people are without a job, making the Great Depression look like a prosperous time.
 
Oh boy.

What else do you expect from a prepper site? I call it hoax news unless you are living under a rock.

The imminent demise of the dollar as world reserve currency has been predicted most of my adult life. I’m sure it will eventually give way once a clear alternative is established. But at this point hard to believe it will happen in my lifetime.
 
A lot worse things will happen first that would be a lot more worrying. Hopefully, the dumb fanatical folks that would cause it can be held off till WE Kark it.
 
There have been books and articles about this for as long as I can remember. It can happen, but I’m not spending my time worrying about it when the zombies could come at any minute!
 
Hardatit said:
Sorry to post a busted link, I guess I caught the only window where the site worked.

It went into great detail, I'll do my best to summarize accurately. Basically it was saying this all has been in motion for years and when we pulled out of Afghanistan that really set the table for it to happen. Additionally, our country cannot repay the debt it owes. Saudi is worried we can no longer fullfill the security agreement between us and them. Our relationship with them is getting more and more strained. Saudi will partner with China on oil (their top customer) and Russia, basically killing the petrodollar. The main currency will then become BRICS and hyperinflation will start in the US making our savings and cash worth pennys. They said you'll trade a bag of cash for piece of bread. China will be calling the shots and we will no longer be the world superpower. Millions people are without a job, making the Great Depression look like a prosperous time.
Click to expand...

I read the cached version via Google.

Yeah, their reasoning is just a bunch of handwaving with no citations.

Plenty of countries have tried to setup alternative reserve currencies and those schemes have all come to naught.

Mostly because no one trusts those 3rd world countries...e.g. Russia & China can manipulate the value of their currency directly w/o having to buy/sell reserve currencies like the dollar and Euro.

So someone will cheat on the terms of the agreement to the detriment of someone else and so whatever system they design will simply break down.

Similar to what happens with OPEC...despite and agreement to limit output countries inevitably cheat.

But the world needs oil...the world doesn't need another reserve currency.
 
When I first read the title of this thread I thought it was related to a headline I'd seen about Saudi Arabia making noise (again) about accepting other currencies than the USD.

That, to me, is a far more interesting discussion than end-of-days scenarios. Frankly I have no clue what the actual impact may be. I assume it's not good for the USD.
 
Prerequisites for a reserve currency

The biggest issue with the US$ losing reserve currency status is no other country wants it. At the risk of oversimplification, to be a reserve currency these 4 requirements must be met:

1) Have completely open capital markets with no restrictions on capital movements

2) Run a current account deficit and capital account surplus

3) Conduct a monetary policy that ensures global liquidity for the reserve currency, ensuring all legitimate global liquidity needs are fully satisfied.

4) The currency should hold a large share of global financial transactions.

China definitely does not meet any of the first 3 requirements, and its political system is not compatible with the first or third. The EU does not meet #2 and has no desire to do so. The oft mentioned SDR alternative meets none of the requirements.

In effect, the US will continue to be reserve currency until someone else steps up to bat and volunteers, and neither EU nor China have any incentive or desire to do so.
 
I worry about a lot of things. This isn't one of them.
 
I worry exactly zero percent about stuff off random paranoia blogs that don't load any faster than it takes me to write this sentence.
 
marko said:
I worry about a lot of things. This isn't one of them.
Click to expand...

Same with me. I tell a close friend - when it comes to stuff to worry about, heart disease and type 2 diabetes are far more serious, far more likely to affect us, and with much more severe consequences.
 
Exactly the responses I thought I would get. I just needed a vector check, retired this past July and I've had my head to the grindstone for a while doing projects around the house and enjoying life and I've been out of the loop on what is actually going on outside of my circle.
 
Hardatit said:
Exactly the responses I thought I would get. I just needed a vector check, retired this past July and I've had my head to the grindstone for a while doing projects around the house and enjoying life and I've been out of the loop on what is actually going on outside of my circle.
Click to expand...

"....enjoying life and out of the loop..." the way it should be; we'd all be better off if we did that. Carry on.

My uncle's favorite phrase was: "What's it got to do with me?" A good first question when getting swamped by all the inputs.
 
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