Despite Rumblings, The Dollar Is Safe As The World's Currency
Today's story in The Independent that a number of Middle East countries, China, Russia, Japan and France, are planing to end dealings in U.S. Dollars is getting a lot of attention.
The article claims that Central bank governors in Russia, China, Japan and Brazil have held secret meetings to work on the plan, and The Independent stated that Gulf Arab and Chinese banking "source" confirmed that the plan is in the works and a transaction from dollars will happen within nine years.
Scary stuff right?
But this article is a complete stretch at best and an outright lie at worst.
The article claims that Central bank governors in Russia, China, Japan and Brazil have held secret meetings to work on the plan, and The Independent stated that Gulf Arab and Chinese banking "source" confirmed that the plan is in the works and a transaction from dollars will happen within nine years.
Scary stuff right?
But this article is a complete stretch at best and an outright lie at worst.
- Of course these foreign government's would love to trade in a currency other than the U.S. dollar, they hate us, but what currency?
- Of course the U.S. dollar is a fiat currency which can be printed at will, but what country's currency isn't?
- Of course the Federal Reserve is monetizing the debt, but what country isn't or wouldn't if they could?
- Gold would be great, but it too can be manipulated. Plus the storage and movement make this option unlikely.
- How can you get any of these countries to agree on anything, let alone a currency that will have the same problems as the U.S. dollar?
If it ain't broke, don't fix it. This is the stance that many countries will take, even though they all wish it could be different. The dollar is safe as the world currency for the foreseeable future.
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