All good things come to an end

[dkami]

Is USD as the reserve currency coming to an end?

It's becoming clearer that most of the largest economies in the world are bypassing the USD in international trade, instead using their own currency's and it seems China is leading the way international trade is done following closely by Russia

China is said to become the largest economy by 2016 and with China leading the way international trade is done even with smaller economies like Australia the ramifications for the USD could be huge with China selling their U.S. Bonds and Treasuries causing high inflation across the USA

With the USA in such a bad state of affairs, confidence in the dollar at its lowest level and Americans among the most hated people on the planet even amongst its allies in my opinion USD isn't to big to fail its just a matter of time!

 

[Pharaoh]

I don't think Russia is stable enough for too many nations to load up on rubles. On the other hand, my personal branch of Mattress Bank endorses Chinese Yuan.

 

[Jason Rogers]

Is USD as the reserve currency coming to an end?

It's becoming clearer that most of the largest economies in the world are bypassing the USD in international trade, instead using their own currency's and it seems China is leading the way international trade is done following closely by Russia

China is said to become the largest economy by 2016 and with China leading the way international trade is done even with smaller economies like Australia the ramifications for the USD could be huge with China selling their U.S. Bonds and Treasuries causing high inflation across the USA

With the USA in such a bad state of affairs, confidence in the dollar at its lowest level and Americans among the most hated people on the planet even amongst its allies in my opinion USD isn't to big to fail its just a matter of time!

The US dollar might eventually lose its dominance, but I don't think it will be anytime soon. Actually, the latest data from the Bank of International Settlements show that the US dollar's share of total volume in the forex market has actually increased over the past 3 years with USD being part of 87.0% of all currency trades: Chinese Yuan Enters Top 10 Most-Traded Currencies - WSJ.com

The Chinese yuan has made huge strides to crack the list of top 10 most-traded currencies, but as you can see from the table above it's still a long way from challenging the US dollar.

 

[Red Herring]

I wish attack on Syria should create a bit negative impression on the USD....

 

[dkami]

@ Jason, Yes you may be right it may not be anytime soon.Whether it will just be a ripple affect or a massive tsunami washing back all the Dollars back to where they belong is anyone's guess but one thing is for sure the tide is certainly changing and American lifestyle will change with it!

It was only about a year ago when China made the deal with Australia and Japan to bypass the USD and I'm not real sure on the timelines on the other deals china have done this deal with like Russia ect.

China is South Africa's biggest trade partner and not the USA now and with Chinese currency growing In Africa it's certain to squeeze out the USD over time over there.

The five major emerging economies Brazil, Russia, India, China and South Africa - BRICS have Plan To Use Own Currencies When Trading With Each Other.

India To Use Gold To Buy Oil From Iran.

So it will be interesting to see how this affects the USD and America in years to come!

It is said that it's the Asia's century of growth so what does the U.S. do to get its share of trade, It goes and moves more war ship's ect. into the region. I mean come on this is no way to do business, It's no wonder U.S. are the most hated people on the planet and has one in six U.S. citizens are on food stamps, No one wants to do business with a bully!

China is Australia's biggest trade partner and as an Australia I can tell you 1st hand America coming over to this region picking fight's does not bode well amongst Australian's but whats worse U.S. dragging us into it's sh*t

You do not see China on the TV news every night picking fighting against all these different nations unlike the U.S., China gets on with business peacefully! (thus far)

Since 1991 the U.S. has been at war in two out of every three years and all these military interventions involved countries that had not attacked the U.S.,Libya, Iraq, Serbia, Haiti, Somalia, Panama, Grenada,North Vietnam,Afghanistan and you could probably add Syria to the list in the following week's.Having said this I do believe there is a place for intervention there's no dough about that but only to help a Country not to pillage the sh*t out of it and leave a massive mess that take's decades to recover from if at all.

 

[dkami]

I wish attack on Syria should create a bit negative impression on the USD....

Your wish is my command = hyper-inflation is on its way LOL

 

[Jason Rogers]

I don't think Russia is stable enough for too many nations to load up on rubles. On the other hand, my personal branch of Mattress Bank endorses Chinese Yuan.

The Indian Rupee might also present an opportunity for a long term play, since it's taken a beating lately and is trading at all time lows.

 

[Pharaoh]

Thanks for the tip. I'll have to see if I can find a reliable source for getting hold of some more. Right now, I've only got a small handful of Indian coins.

 

[dkami]

Now the dreaded debt ceiling debar cal this week to look forward to LOL

 

[Laslo]

Well, let me disagree on the part where you're talking about Yuan and Rupee are to become a reserve currencies. We all know that China's economy based on the international trade. Chinese goods are popular due to the low price. The low price is held due to the low primecost caused by the low live standards. Now let's look at the situation when Chinese currency become one of the world currencies or even the reserve currency. Even if the live standards will not get higher at that time, the demand for Yuan will cause the significant increase of the exchange rate.

Which will lead to the increasing of prices for the Chinese goods, which will hit the economic. Almost the same situation is with rupee now.

As for the long run, I'd stick with CHF.