China, world reserve currency, and the US dollar

nornerator · 03-31-2009, 08:59 PM

The US dollar is the reserve currency of the world. Basically this means that many countries have huge stock-piles of US dollars because it is considered a "safe" investment. Countries need US dollars to buy Oil. Oil can only be bought with US dollars, part of the reason we went to war with Iraq was because they were going to sell Oil in exchange for Euro's.

Much of the value of our dollar has to do with the demand for US dollars around the world. The US dollar is a commodity and the forces of supply and demand hold. The dollar is in high demand because countries need it to buy oil, this gives the dollar most of its value.

Now China wants to get rid of the US dollar as the world reserve currency. China wants its own currency to be the reserve currency.

If the world EVER goes off of the US dollar as the reserve currency, money will be practically worthless.

If the world stopped using the US dollar as reserve currency, countries around the world would quickly line up and start trading their dollars for the new currency. This will cause the supply of dollars to go WAY up and demand to go way down. This will cause hyperinflation of unprecedented levels. This is by far our biggest economic fear and would completely collapse our economy almost instantly.

We would have to get rid of the dollar and switch to a new currency. If this happened any money in any sort of savings account, bond, or stock would evaporate. The best way to protect yourself is to invest in things that have inherent or historical value. Canned goods have an inherent value to them, and precious metals have a historical value.

Google News

ciregg222 · 03-31-2009, 10:22 PM

Wow ...

RandomOne · 03-31-2009, 10:46 PM

Quote:

Originally Posted by nornerator

The US dollar is the reserve currency of the world. Basically this means that many countries have huge stock-piles of US dollars because it is considered a "safe" investment. Countries need US dollars to buy Oil. Oil can only be bought with US dollars, part of the reason we went to war with Iraq was because they were going to sell Oil in exchange for Euro's.

Do you have a source for that part about Iraq, because if that's true that would have been THE reason to invade Iraq.

Quote:

Much of the value of our dollar has to do with the demand for US dollars around the world. The US dollar is a commodity and the forces of supply and demand hold. The dollar is in high demand because countries need it to buy oil, this gives the dollar most of its value.

Now China wants to get rid of the US dollar as the world reserve currency. China wants its own currency to be the reserve currency.

If the world EVER goes off of the US dollar as the reserve currency, money will be practically worthless.

If the world stopped using the US dollar as reserve currency, countries around the world would quickly line up and start trading their dollars for the new currency. This will cause the supply of dollars to go WAY up. This will cause hyperinflation of unprecedented levels. This is by far our biggest economic fear and would completely collapse our economy almost instantly.

I heard about something about a month back that happened in Asia, where something like 1 trillion US dollars were converted into asian currencies, and no one knew what was going on. It was more money than 1 business could have been moving, it was a large group of businesses or even a nation moving this money. Have you heard about this? could it have been china?

Quote:

We would have to get rid of the dollar and switch to a new currency. If this happened any money in any sort of savings account, bond, or stock would evaporate. The best way to protect yourself is to invest in things that have inherent or historical value. Canned goods have an inherent value to them, and precious metals have a historical value.

Google News

I think resources will be the most important thing to invest in if that were to happen. Stockpiles of gasoline, food, water, generators, weapons, camping equipment will be essential.

nornerator · 03-31-2009, 10:59 PM

Saddam Turns His Back on Greenbacks - TIME

The author of the article doesn't seem to really understand the reason Saddam was doing this, and failed to mention the catastrophic effects if OPEC were to switch to the Euro.

Simply searching for Saddam Euro will bring up many results relevant to this discussion.

Invasion of Iraq and Afghanistan was a strategic move to thwart OPEC if they were to decide to switch off the US dollar.

Privaron · 03-31-2009, 11:35 PM

Eh we all knew it was coming guys. We couldn't live off South Park Tv dinners hardcore porn and our own pride forever.

**dirtbomb** · 04-01-2009, 02:18 AM

So, if this happens, I guess we can figure out who we're fighting in the next war.
Heaven help us.

Privaron · 04-01-2009, 02:20 AM

Quote:

Originally Posted by dirtbomb

So, if this happens, I guess we can figure out who we're fighting in the next war.
Heaven help us.

Heaven tends to help the good guys.

**dirtbomb** · 04-01-2009, 06:10 AM

Quote:

Originally Posted by Privaron

Heaven tends to help the good guys.

So I guess both sides are fucked.

subs1000w · 04-01-2009, 02:23 AM

the scary thing is 99% of the us population is oblivous to this and its not a matter of if but when and with obama printing and spending dollars faster than ever before its going to happen sooner than latter and im trying to warn my friends and fam but most dont care or are to "dumb" to understand what a shame at least ill be ok

nornerator · 04-01-2009, 03:24 AM

U.S. dollar will stay world reserve currency: W.House | U.S. | Reuters

Quote:

LONDON (Reuters) - The U.S. dollar will remain the world's reserve currency and the strength of the United States' economy is unmatched, the White House said on Tuesday, when pressed about comments from Russia and China about a new world reserve currency.

"We've been quite clear that the reserve currency of the world is now and will continue to be the U.S. dollar," spokesman Robert Gibbs told reporters aboard Air Force One, which was carrying President Barack Obama to Britain for this week's G20 summit.

"The strength and breadth of our economy is unmatched."

(Reporting by Caren Bohan)

Wow! Can you believe that! Our own government said that the world reserve currency wont change because we don't want it to. Is that really going to stop the rest of the world from going off the US dollar currency? Unless the US is the world government already I don't think the US really has terribly much of a say in that matter in comparison to all the other countries.

Another meeting just to keep what is undone not done

Quote:

Emerging economies Brazil, India, South Africa and South Korea have backed China’s proposal that had originated a week before in Moscow, but US and EU officials dismissed it out of hand. While Washington insists on keeping the dollar the prime currency of world trade, Brussels is mainly concerned with practicalities.

So lets see, China, Brazil, India, South Africa, and South Korea have backed this proposal. How many people is that exactly?

China -1,330,044,605
India - 1,147,995,904
South Africa- 44,344,136
South Korea - 48,379,392
Brazil - 191,908,598
Argentina - 40,482,000
Total - 2,803,154,635
Total World Population - 6,706,993,152
% of world population that has currently signed on to switching off the US dollar world reserve currency 41.8%

By GDP

China -$3.251 Trillion
India- $2.966 Trillion
Brazil - $1.9 Trillion
South Africa - $0.2826 Trillion
South Korea - $1.206 trillion
Argentina - $0.260 Trillion
Total - $9.87 Trillion
World GDP - $54.62 trillion

18% of the worlds GDP

This is a fairly sizable threat. If they presented themselves well with a plan to implement, the G20 might just take them all seriously. And with one fell swoop the house of cards would come crashing down. We shall see shortly I suppose.

03-31-2009, 08:59 PM	#1
nornerator Sr. Member Join Date: Oct 2005 Posts: 1,801 Grams: 11,911.35 Thanks: 933 Thanked 745 Times in 304 Posts Stock Portfolio Total Value: 0.000 Gain/Loss: 0.000%	China, world reserve currency, and the US dollar The US dollar is the reserve currency of the world. Basically this means that many countries have huge stock-piles of US dollars because it is considered a "safe" investment. Countries need US dollars to buy Oil. Oil can only be bought with US dollars, part of the reason we went to war with Iraq was because they were going to sell Oil in exchange for Euro's. Much of the value of our dollar has to do with the demand for US dollars around the world. The US dollar is a commodity and the forces of supply and demand hold. The dollar is in high demand because countries need it to buy oil, this gives the dollar most of its value. Now China wants to get rid of the US dollar as the world reserve currency. China wants its own currency to be the reserve currency. If the world EVER goes off of the US dollar as the reserve currency, money will be practically worthless. If the world stopped using the US dollar as reserve currency, countries around the world would quickly line up and start trading their dollars for the new currency. This will cause the supply of dollars to go WAY up and demand to go way down. This will cause hyperinflation of unprecedented levels. This is by far our biggest economic fear and would completely collapse our economy almost instantly. We would have to get rid of the dollar and switch to a new currency. If this happened any money in any sort of savings account, bond, or stock would evaporate. The best way to protect yourself is to invest in things that have inherent or historical value. Canned goods have an inherent value to them, and precious metals have a historical value. Google News Last edited by nornerator : 03-31-2009 at 10:45 PM.

03-31-2009, 10:22 PM	#2
ciregg222 Member Join Date: Jun 2008 Posts: 391 Grams: 6,365.25 Thanks: 304 Thanked 272 Times in 112 Posts Stock Portfolio Total Value: 0.000 Gain/Loss: 0.000%	Wow ... __________________ It burns ..... when I smoke it.

04-01-2009, 02:18 AM	#6
dirtbomb Hippie Join Date: Sep 2008 Posts: 2,152 Grams: 17,186.00 Thanks: 1,005 Thanked 974 Times in 595 Posts Stock Portfolio Total Value: 0.000 Gain/Loss: 0.000%	So, if this happens, I guess we can figure out who we're fighting in the next war. Heaven help us. __________________ ---------------------------------------------------- Uh, I forgot, Man. What? Oh yeah I dig. Never mind. Enjoy all the delicious flavours of our posting guidelines! http://www.marijuana.com/site-feedba...uidelines.html

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