Quote:
Originally Posted by ratchetjaw666
I doubt the yuan will be the nest reserve currency. I would more suspect that China along with the rest of the BRICS nations will put together some sort of hybrid like the euro. But the writing is on the wall. The US dollar will not be the reserve currency in the future. The only way we will be able to retain that position would be to go back to gold and silver backed currency, but to do that gold and silver will have to be removed from the comex board or it would result in huge inflation. The fact is there will be no changes to US policy on currency. The powers that be would prefer to collapse our economy so that they could purchase assets at pennies on the dollar.
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I dont think they intend to have the Yuan as the next reserve, there are about 24 other countries that have already formed a Union similar to Europe, organised by China, and they have discussed the next world reserve currency. It is supposed to be called Bank,,,, something, I cant remember the name of it or the name of the new Union. But the IMF and that Asian, European and Latino Unions and markets are preparing well in advance of the release of the new currency by printing a LOT of the SDR. I dont think the IMF would make an official announcement about something as important as this, if it were not true.
Gold and silver have soared in value in relation to this. However, the major monetary metal in history is silver, not gold, as many think.
So whatever happens the reorganistation of the new world currency needs to be done with great care, so as not to encourage the US $ to decline in value too rapidly.
If the U.S. dollar goes into permanent decline, domestic consumption by both individuals and businesses in the U.S. will suffer resulting in a drop in yearly GDP. If the world were to move away from the dollar as a reserve currency, the dollar would devalue making all foreign imports very expensive until a new financial system is put in place. People would buy less, companies would profit less, and the government would lose out in taxes. A theoretical TOTAL loss of consumption would leave the current US GDP at around $4.2 trillion, from about $14.9 trillion. I also think you would see a significant decrease in purchases of foreign cars, electronics, designer clothing, household products/goods. etc. This will affect the worlds' trading in general, all round.
The new Unions I talked about before, have already taken this into account. They have already made deals with each other to sell basic commodities, such as rice, wheat, etc. and more importantly oil, thus it would appear cutting out the need to deal with, not only the U.S., but the Arabian suppliers too.
For example, the Latino and South American Union, set up about 3 years ago, by the President of the country where I now live, Dominican Republic, have already started to construct under the sea pipes, to supply oil from/to each other. The US tried to get involved with this but their offers were refused.
So it has all been forseen and planning started, to overcome it by these new Unions involving different countries. This situation was all caused/increased, by the actions during the last US adminstration, printing more and more $$$, which they are allowed to do, as they have the World Reserve Currency, to pay their debts to other countries. Some of those other countries have now had enough.