http://money.cnn.com/2011/02/10/markets/dollar/index.htm The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system. SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs. While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar. Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system. "Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said. The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy. In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.
looks like the push for such is under way. However, I doubt that within the next decade or more that the US dollar will dominate if we continue with QE 3,4, 5, 6,. With that being said. If the Printing Press stops and Congress get's their act together, the Dollar will return as Favorable. Keep in mind with the Egypt Revolution, many foreign countries ran to the dollar. Regardless of the self destruction this country is undergoing, the dollar became a safe haven once again. So, the cross road is ahead. Do we as a Nation continue the reckless act of "Kick'n the can down the road" or will we suck it up? The fate of the dollar is not yet known...there is some time on the clock.
Nothing is more consistent with a NEW-WORLD ORDER, centrally planned & centrally controlled global tyranny than a supranational, athetistic Global Central Bank reserve currency. EAT IT, STRAUSS KAHN!
Be a sad day when all of our credit cards have an SDR conversion fee of 2% attached to the 39.9 APR .
Well, the only thing that will allow the US to continue to run double deficit spending and consumption excess is its military might (i.e. going to war) if the US reserve currency status is abandoned, as the discrepancy in economic power is asynchronous to the discrepancy in economic relevance.
Military and FMI lol FBI will be enough to stop them when the time will come... (at least it will be more usefull than to arrest tree lovers and smokers)
Many don't realize the extent to which the "International Community" has taken advantage of America. Before Bretton Woods, USA had ~20,000tons of gold after WW2. BW, which allowed our "allies" to exchange dollars which were not backed by gold for gold priced at ~$36 per ounce, resulted in the US losing 12,000 tons of gold to our "allies" when Nixon ended it in the early 70's. So, the US today officially has ~ 8000 tons of gold after giving away so much for less than $40 per ounce. I don't agree with the fact that Nixon ended BW without replacing it with a balanced budget act, as this has allowed massive budget deficits. That is the subject for another post. Also, Europe is supposed, I believe, to pay ~50% for NATO. But, the US is now paying around 75% of the costs for NATO. So, US taxpayers are footing the bill forother countriesw security. Also, the Us is spending ~1.4T per year total on defense. This includes all programs not included in the official military budget like the part of interest due to past military spending, the D of E, homeland security, benefits, etc... A lot of this is going towards spending that provides secuity and military services to the UN and our "allies" at no cost to them. While our allies can spend money on infrastructure, education, and other services to the population, US is spending 10% of GDP to give them free security. Compare that to China which charges companies that use the Chinese navy in the gulf for escorts past the pirates. Now, some of these same "allies" who gained 12,000 tons of gold for nothing and who can spend money on their populations because the US provides them with free security, want to end the dollar as the reserve currency. go figure...