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Thread: Why Will The US Dollar Lose its Reserve Status?

  1. #21

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    Quote Originally Posted by Ryanferr View Post
    To me it seems reserve status is a result of hegemony and that hegemony leads to reserve status, not the other way around.
    We were economically superior at the time of Bretton Woods, that's arguable now.

    I think now, we are merely taking advantage of reserve status.

    The next world reserve currency will be chosen by others, just as Bretton Woods and it's 730 delegates conferred reserve status us.

    .

  2. #22

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    Quote Originally Posted by Carpenter View Post
    We were economically superior at the time of Bretton Woods, that's arguable now.

    I think now, we are merely taking advantage of reserve status.

    The next world reserve currency will be chosen by others, just as Bretton Woods and it's 730 delegates conferred reserve status us.

    .
    Sure, but the British hegemony began to decline in the late 1800s and then ceased to exist leading up to WW1. Not so coincidentally their monetary hegemony began to slip in the years following WW1 and they then lost their reserve status. After WW2 when the world abandoned a balance of power scheme and instead shifted the US hegemony, the US reigned supreme and later had the dollar adopted as the defacto reserve currency as you stated during Bretton Woods.

    So to me it seems hegemony leads to reserve currency, not reserve currency leads to hegemony. So so long as we maintain our hegemony, the reserve currency status should stay in tact. Basically I am arguing that the theory we are going to lose our reserve currency status and then slip into economic chaos has it backward as slipping into economic and political weakness is what will result in us losing the reserve status.
    Last edited by Ryanferr; 04-24-2014 at 02:14 PM.
    The answers are in the data

  3. #23

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    Perhaps we differ on the exact nature of US hegemony prior to Bretton Woods.

    I thought US aspirations were more regional prior to WWII.

    How do you view the US sphere of influence prior to the conference of reserve status?

  4. #24

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    The funniest part of this thread is that the premise is flawed. The U.S. Dollar is not the global reserve or standard. Most people are just to uneducated and brainwashed to be aware of this fact. This is how they want it, and as long as they continue to be successful things will carry on just fine as they are.

  5. #25

    Talking

    Quote Originally Posted by SilverShareHolder View Post
    The funniest part of this thread is that the premise is flawed. The U.S. Dollar is not the global reserve or standard. Most people are just to uneducated and brainwashed to be aware of this fact. This is how they want it, and as long as they continue to be successful things will carry on just fine as they are.

    Funny!

    I said it in earlier in one word "FAITH".

  6. #26

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    Quote Originally Posted by Westerner View Post
    Funny!

    I said it in earlier in one word "FAITH".
    And that is it. You are correct, it all comes down to faith. The faith that they teach in the mandatory "free" schools and the faith they teach on television and "news" papers etc, as long as the faith is strong things will continue along just fine. But the fact is the U.S. Dollar is not the global reserve but most people do not know what or why a U.S. Dollar was so everything is just fine, and hopefully will continue to be so.
    Last edited by SilverShareHolder; 04-24-2014 at 05:21 PM.

  7. #27

    Default

    Quote Originally Posted by SilverShareHolder View Post
    . The U.S. Dollar is not the global reserve or standard.
    What is then, serious question from this layman, please explain? Thanks!
    Unless you mean OIL
    Last edited by Torcan; 04-24-2014 at 11:01 PM.

  8. #28

    Default

    Quote Originally Posted by Torcan View Post
    What is then, serious question from this layman, please explain? Thanks!
    Unless you mean OIL
    The short answer would be the Federal Reserve Note.
    A U.S. dollar is 24.057 grams of pure Silver.

  9. #29

    Default

    Quote Originally Posted by SilverShareHolder View Post
    The short answer would be the Federal Reserve Note.
    A U.S. dollar is 24.057 grams of pure Silver.
    Obviously a snide remark....also obvious this thread refers to the $US as the FRN unless of course you pay for your groceries in liberties?

    Back to normal discussion. If the Russian/China alliance holds any water & a new currency becomes a challenger to the $US. what of all the US debt owned by these powers? I'm sure they watch over FRN value very keenly. They would need a lot go gold to really challenge the reserve currency one on one. Yes the IMF is working with the CB's & we have the BRICS nations holding up there torches but really speaking. Oil is the challenging payment option right now. Not gold.
    "Dad, why do guyz have nipples"

  10. #30

    Default

    Quote Originally Posted by Ryanferr View Post
    Sure, but the British hegemony began to decline in the late 1800s and then ceased to exist leading up to WW1. Not so coincidentally their monetary hegemony began to slip in the years following WW1 and they then lost their reserve status. After WW2 when the world abandoned a balance of power scheme and instead shifted the US hegemony, the US reigned supreme and later had the dollar adopted as the defacto reserve currency as you stated during Bretton Woods.

    So to me it seems hegemony leads to reserve currency, not reserve currency leads to hegemony. So so long as we maintain our hegemony, the reserve currency status should stay in tact. Basically I am arguing that the theory we are going to lose our reserve currency status and then slip into economic chaos has it backward as slipping into economic and political weakness is what will result in us losing the reserve status.
    fully agree with that explanation it is growing economic prosperity which leads hegemony, look at the story of british India, it was industry which led to trade and the prosperous trade of the East Indian Company which led to british military / governmental = taxation presence and this fabulous trade led to the hegemony of the .
    It all was lost in WWI and even more in WWII today the UK is falling into pieces.

    From WW I onwards the US has been building up muscles ( The great depression was an interlude of overproduction compared to demand in the afterwar situation, western europe was bankrupt, so no demand or much less demand ).

    WWII dragged the US manufacturing industry out of the marshes and the forced march to counter after the war the communist threat forced the US and also europe to overspend. The high of this situation happened with the Vietnam war, That war broke the string, forced the US to use force and tricks to preserve the dollar hegemony which never before had been discussed.

    Where it had been manufacturing and trade which led dollar hegemony and dollar hegemony to military hegemony; it is now winding baclwards it is the military hegemony which backs the dollar and not trade nor economy anymore.
    The Financial engeneering is nothing but a swindle a hous is a house and when a house of 100 k suddenly is Worth 400k, we all know that the nature of the house hasn't changed but the moneyunit is only worth one fourth of what it had been.

    People even POOR people in poor countries get it and that is the dollarproblem. When the MASS of POOR have lost trust in the dollar value, then as they say in french " les carottes sont cuites" which means as much as the case is lost ( hard carrots become mashmallowish when cooked).

    It is IMO clear that the USdollar is not gonna disappear, but swooning. I guess losing its value over time like a human hit by an incurable disease, having periods of near stability and then moments of sudden health degradation.

    This is not only a US problem but a problem which holds the whole west in its claws.
    Though some try to say it is all getting better, I doubt it, really doubt it, the rot went already too far and moreover the patient is unwilling to change his habits.

    Golditiki2+++
    Last edited by golditiki2; 04-25-2014 at 08:07 AM.

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