. September 22, 2008 SouthAmerica: I wrote a number of times in the last few years that we were approaching the end of the line for an international monetary system based on the US dollar. I said a number of times: âI donât know when the stamped out of the US dollar will start â but there many things that can trigger the spark, and that can turn very fast into a major international monetary crisis â something not seen for a long time.â Finally we have reached that trigger point and I am in the process of writing an article explaining why the US dollar has reached the end of the line and the end of its useful life, and why the stampede out of the US dollar can start at any time now â at this point the world is going to demand the creation of a new international monetary system designed for the world of the 21st Century. In December of 2005 I started a thread âPanic and the US dollarâ, but the thread was moved from the economics forum to the Politics and Religion forum. Maybe the moderator of the economics forum was right when he decided to move this thread from the economics forum to the Religion forum - now I started understanding his reasoning for such a move â the value of the US dollar is based on âFaith onlyâ and not on economic theory. Since American economic dogma about free market capitalism has been discredit and turned out to be just a cult â now the foundations of the entire US economic system has become questionable including what kind of real intrinsic value is behind its currency â the US dollar? In the last few weeks we did not witnessed only the demise of the free market economic system in the United States â we also witnessed the end of the line for an international monetary system based on the US dollar. Finally that international monetary crisis as never seen before is here and the final meltdown of the US dollar will materialize as Panic sets in and we see a stampede out of the US dollar. Here are a few things that I wrote on this forum in the last 3 years: PANIC and the US Dollar http://www.elitetrader.com/vb/showthread.php?s=&threadid=60201&perpage=6&pagenumber=9 I donât know when the stamped out of the US dollar will start â but there many things that can trigger the spark, and that can turn very fast into a major international monetary crisis â something not seen for a long time. ***** March 12, 2008 SouthAmerica: â¦But with massive US government intervention to bailout Wall Street â and the American financial system is supposed to be an efficient system, at least is what they preach in Wall Street until they need another major government bailout. The way things are going I would not be surprise if the coming years the United States economy needs to be bailout with loans from the IMF â just like a 3rd world country. ***** May 16, 2006 SouthAmerica: Forget the usual reasons regarding currency ups and downs and its relationship to foreign trade, the business cycle and so onâ¦ When a country decides that its currency will be one of the major reserve currencies around the world â remember close to 75 percent of the US dollars ever issued are flying around the world today completely outside of the US Treasury and Federal Reserve circle of influence. Since the United States made the choice of becoming a very influential currency in world affairs when they replaced the gold standard â it is implied on that influence that the US will also act on a responsible way regarding its currency and would try to maintain the value of the US dollar as stable as possible in relation to the other major currencies of the world and the price of gold. (Gold is the other major source of monetary reserves of most countries around the world.) Otherwise the United States can cause a major international monetary crisis if we have a collapsing US dollar in world markets. The United States is inviting a crash against the US dollar when members of the US government administration follows a policy that deficits does not matter. You can fool people just for a certain period of time until they catch on regarding on what is really happening. The US dollar became a special currency because it is a reserve currency held by many countries around the world. Because of this special reserve currency status the US dollar benefits in many ways including the global pricing of oil is done in US dollars. The Bush administration â probably the most âincompetentâ US government administration in US history â or they donât understand it or they forgot that the US dollar is a reserve currency and they should not play games with government policy to further undermine the value of the US dollar. The $ 70 billion dollar tax cut that they passed a few days ago it is just the latest example of the recklessness of the Bush administration regarding monetary policy. The value of the US dollar should go down and adjust accordingly to more red ink generated by this tax cut - because this tax cut makes the US deficit spending even worse. (In my opinion, we have Idiots running economic policy in Washington today.) ********* December 2005 SouthAmerica: â¦When this US dollar collapse becomes reality, the less developed countries will be the most devastated by this event, because these countries hold only a small fraction of their reserves in gold or euro. Today over 70 percent of US currency circulates outside the United States. The major holders of this currency are the euro countries, Japan, China, Hong Kong, Taiwan, South Korea, Indonesia, and Singapore. About 75 percent of the US dollars circulating outside the United States are in the hands of these few Asian central banks, and if any one of these countries decides to sell their US dollar monetary reserves to buy gold it will produce a stampede to exit the US dollar, creating a gold and euro buying panic â and we will have a major international monetary crisis in the world. I don't know exactly, when or what will trigger the coming events, since no finance minister or central banker wants to be blamed for launching the world into a major international monetary crisis. But the collapse of the US dollar it is coming before you know it. You can bet on that!!!! .