Dollar Seen Losing Global Reserve Status

ksammut · June 27, 2011 9:26PM

Dollar Seen Losing Global Reserve Status

Just a matter of time if we do not fix our problems.

JCMhouston · June 28, 2011 12:28AM

I also think it is inevitable, but what effect does that have on me? And how can I profit or protect myself from it? Those are the real questions.

cohodk · June 28, 2011 12:53AM

<< Dollar Seen Losing Global Reserve Status

Just a matter of time if we do not fix our problems. >>

25 years is a lot of time to fix our problems. And one of the largest problems--aging baby boomers--will have corrected itself as the bulk of them will be deceased.

OPA · June 28, 2011 12:55AM

<< 

<< Dollar Seen Losing Global Reserve Status

Just a matter of time if we do not fix our problems. >>

25 years is a lot of time to fix our problems. And one of the largest problems--aging baby boomers--will have corrected itself as the bulk of them will be deceased. >>

Thanks for the vote of confidence.

cohodk · June 28, 2011 1:01AM

<< 

<< 

<< Dollar Seen Losing Global Reserve Status

Just a matter of time if we do not fix our problems. >>

25 years is a lot of time to fix our problems. And one of the largest problems--aging baby boomers--will have corrected itself as the bulk of them will be deceased. >>

Thanks for the vote of confidence.

>>

Heck, I might not be around either. But I am confident that after the US population becomes more streamlined, very properous times will follow. And it is these times in which my children will benefit. So good for them!!!

WarHoundR69 · June 28, 2011 1:21AM

Just look up what happened to the common folk, in England, when the British Pound lost Reserve Status.

pf70collector · June 28, 2011 2:28AM

But didn't all those baby boomers have kids also, multiplying the effect.

mrearlygold · June 28, 2011 2:43AM

I remember my dollars being rejected in most places in China ( I would NEED to convert to rmb ) and this is 10 years ago. Ditto in Thailand. Most merchants in Vietnam would take them then but they had to be fairly new notes or they rejected them.

Is the dollar more desireable now or less desireable ?

edmundfitzgerald · June 28, 2011 2:54AM

The dollar is more desireable at your local bank. Not sure if you noticed, but the FDIC insured amount has been raised at most
branches from 100,000 to 250,000.

Coyn · June 28, 2011 3:43AM

25 years is a joke. If this game lasts another 5 we would be lucky

Banemorth · June 28, 2011 4:28AM

The world reminds me more and more of this song and video by Disturbed.

http://www.youtube.com/watch?v=u6KXgjLqSTg

roadrunner · June 28, 2011 7:41AM

<< 25 years is a joke. If this game lasts another 5 we would be lucky >>

This topic was discussed here back in the 2004-2005 time frame and the majority felt that the dollar would be around and sound for another 20-30 yrs minimum.
Some of the gold bugs thought that 5-15 yrs might be all she had left in current forum. Fast forward 6 yrs and it sure does look like that we'd be lucky to get out
of this current decade with the dollar intact (not formally devalued or revised) and remaining as the world's reserve currency. This is what $1.14 QUAD in otc
derivatives can reap.

roadrunner

mhammerman · June 28, 2011 9:17AM

I agree that 5 yrs is likely optimistic for the Ben to remain the world reserve currency without a game change such as devaluation, reissue, or outright default.

cohodk · June 28, 2011 9:45AM

<< But didn't all those baby boomers have kids also, multiplying the effect. >>

Yes they did, but those births were spread out over a 30 year time frame--not 15 like the boomers. For example, from 1954 to 1964 there were an average of 4.2 million births. From 1965 to 1985 the average was about 3.4 million.

This dramatic slowdown in births is also responsible in large part for out current economic problems. Most households are formed when people are in their early 30s--born 1975 to 1980. Those years are also some of our lowest birth rates with only about 3.2 million births per year.

You also have to compare the size of the baby boomer population to the overall population of the USA . In 1945 the pop of the USA was 133 million, by 1962 (17 years later) was 186 million, a 40% increase. It took 32 years (1994) for the pop to increase another 40%. And took 30 years to increase prior to the boomers arrival (1915 to 1945). The boomers had and are still having a MAJOR impact on the US economy.

derryb · June 28, 2011 12:10PM

<< The dollar is more desireable at your local bank. Not sure if you noticed, but the FDIC insured amount has been raised at most
branches from 100,000 to 250,000. >>

FDIC is an advertising gimmick to convince you to leave your money in the bank (It's not really there, most of it was loaned to home buyers who can't pay it back). Raising the protection was just an effort to calm the population during the 08 banking crisis as there was a serious threat of a "run" on the banks. It is believed by many that the banks physically have about five cents on the dollar of all deposits. FDIC insurance protects depositors from a failure of a small and limited number of banks and would not survive a massive number of bank failures. While you are protected from the failure of your bank or fraud on its part, a large scale banking system failure would take most deposits with it and an leave FDIC unable to keep their promise. FDIC insurance is nothing more than a tax that banks are required to pay. Of course the bank passes on that cost to you and I in the form of higher feess.

There is no actual FDIC fund

vibr0nic · June 28, 2011 1:55PM

<< The world reminds me more and more of this song and video by Disturbed.

http://www.youtube.com/watch?v=u6KXgjLqSTg >>

Pretty good cover of a classic Genesis song, and a good video choice to go with it.

streeter · June 28, 2011 1:56PM

There are two ways I spend a dollar.

As a consumptive act and as an investment act.

As a consumptive act, I'm getting killed.

As an investment act, I'm doing fine. Which is more than offsetting my price of coffee and fuel etc.

Justacommeman · June 29, 2011 9:18AM

I'm pretty sure the dollar will be part of the new reserve currency just not THE reserve currency. I'd like to think it will be a mix of currencies (rmb, swiss, dollar, euro light and gold).

Just my opinion. MJ

cohodk · June 30, 2011 12:48AM

<< I'm pretty sure the dollar will be part of the new reserve currency just not THE reserve currency. I'd like to think it will be a mix of currencies (rmb, swiss, dollar, euro light and gold).

Just my opinion. MJ >>

This would be the only way the dollar would "lose" its status. No other country, with the exception of Canada and perhaps Russia, has the ability to keep its citizens warm and fed. IE, has the ability to grown enough food and produce enough energy to be self-sufficient. Not Germany, France or Switzerland, nor Brazil, China or India.

ksammut · June 30, 2011 3:50AM

<< I'm pretty sure the dollar will be part of the new reserve currency just not THE reserve currency. I'd like to think it will be a mix of currencies (rmb, swiss, dollar, euro light and gold).

Just my opinion. MJ >>

I share similar thoughts.

Dollar Seen Losing Global Reserve Status

Comments