Tuesday, May 22, 2012

Were the Mayans Predicting the Dollar's End?

I'm going to go out on a limb and say that December 21, 2012 isn't the end of the world. However, it could easily be the end of the world as we know it. And how have we known it? Well, for all my life and all of my parents' lives the world we knew was a world where the Dollar was the world reserve currency. Since the Bretton Woods agreement in 1944, the Dollar (or at least the Federal Reserve Note posing as the Dollar) has been the reserve currency of the world. What that has meant for us citizens of the USA is that we enjoyed world dominance when it came to importing things we need... oil, food, labor, etc. And that has meant we paid the best prices for all the things we needed or wanted to consume. And consume we did.
Now we are entering a time when the Dollar's world reserve status is threatened due to manipulation and devaluing of the Dollar by our Central Bank, the Federal Reserve. Brazil, Russia, India, China and South Africa (the BRICS) have entered into agreements to conduct trade without the Dollar. They represent an amount of economic activity nearly equal to the US. Population-wise they represent 40% of the world (the US represents 4.5%). Chief among this bloc of countries is, of course, China. China, who holds 25% off all the foreign US debt in the world and nearly 10% of all our debt. China, who sells us massive amounts of their resources and labor for Dollars that buy less and less throughout the world. China, who has been granted special direct access to our Treasury. And now... China who is tired of the Dollar's special treatment and thinks there currency should be the most favored currency in the world.
This doesn't look good...


There Can Be Only One: China Sovereign Wealth Fund Says Renminbi Will Become Reserve Currency:
First the CIC stirs havoc in Europe, saying it would rather invest in Africa than in Brussels finmin summit caterers, which at this stage in the business cycle are the most profitable corporation imaginable... and now this:

  • CIC'S JIN SAYS RENMINBI WILL BECOME GLOBAL RESERVE CURRENCY

Naturally, to parahprase titles of cheesy 80s movies, there can be only one.

So what would happen to the current one? Maybe the same as what happened to all the prior global "reserve" currencies:

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