The Demise of The Dollar
The fate of the USD has been discussed for many months now. The Chinese have been grumbling. The Russians have shown concern. The issue is the global reserve currency status of the USD, which is the trading currency of the world.
The problem, especially for the Chinese, is how to get out of the dollar (of which it holds billions in reserves) without diminishing the value of its own holdings. This dilemma has been presumed to act as a break on any Chinese action to “bail out”. And it’s a good argument. Both the USA and China are locked into a disturbing symbiotic relationship – that of between debtor and creditor.
The USA, as the worlds largest debtor nation, is in hock to the Chinese – the world’s largest creditor nation. Trouble is, the Chinese want to be paid back – and not in just dollars-as-toilet-paper! That conundrum is taxing the minds of many as to how and when China may seek to replace the USD as the world’s reserve currency.
Well it seems the cat is now out of the bag, with an authoritative report from Robert Fisk, publishing in The Independent, which discloses how the Arab states – along with China, Russia and France – have been secretly meeting in order to establish a new reserve currency (or in this case basket of currencies, including gold) with which to buy and sell oil.
If this secret plan is as real as it appears to be, then get ready to rumble, for this would represent a geopolitical shift of enormous significance, and I can’t imagine it will happen without a “fight” of some sort.
Read the whole article HERE.
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