The US dollar will be easy to collapse

[Zabaniyah]

If the dollar collapses, I'll shoot myself in the foot!

 

[Zabaniyah]

thats it you are a liar and you continue to lie and misinterpret data.

listen to this

Celente on dollar: America sinks with its gold - YouTube

Russia Today is more anti-American than Al-Jazeera.

 

[lem34]

This article was by American

China, Japan Agree to Reduce Reliance on U.S. Dollar
Written by Alex Newman
Thursday, 29 December 2011 09:10

http://www.thenewamerican.com/world-...e-on-us-dollar

The government of Japan and the communist dictatorship ruling mainland China announced a landmark agreement this week to facilitate trade between the two powers without using the U.S. dollar, relying instead on the Japanese yen and the Chinese yuan.

According to the terms of the deal, the two governments agreed to encourage trade directly in yen and yuan without having to use American dollars as an intermediary — the current practice. Companies in Japan and China will soon be able to convert the currencies directly. And the Japanese government also agreed to hold Chinese yuan in its foreign-reserves portfolio.

It remains unclear exactly how and when the agreement will be implemented. But according to news reports, both governments have already set up a working group to iron out the details. Officials said the move was aimed at reducing risk and transaction costs.

The new currency deal comes as the communist Chinese dictatorship has been taking increasingly bold steps to expand the international role of the yuan. The regime’s officials have also become ever-more vocal in attacking the dollar’s global reserve status, calling instead for a more international system managed by a world entity such as the International Monetary Fund (IMF).

Of course, China and Japan are the second and third largest economies on Earth. And their governments are the two largest foreign holders of U.S. government debt. So the deal has huge implications — at least in the long term.

“The run on the dollar that could sink its value and bring surprise hyperinflation to the U.S. has just become a lot more likely,” observed Alfidi Capital CEO Anthony Alfidi, who said the bilateral move would eventually mean higher U.S. interest rates.

“The change does signal to other nations that America’s main trading partners will favor the illiquidity risk of less-traded currencies over the valuation risk of holding dollars tied to unsustainable spending,” Alfidi added, pointing out that demand for dollars would take a hit. “The U.S. financial elite should take a breather from its construction of swap lines for the eurozone to pay attention to this news.”

Other commentators implied that the deal should be seen as a signal aimed at American authorities. “The larger message this pact sends is economic and it is directed at America: ‘We have no faith in your leadership,’” wrote Michael Moran in Slate, saying the two Asian giants had taken another “baby step” toward dethroning the U.S. dollar. He also suggested that, despite official denials, Japan was starting to increase its diversification out of American assets and currency.

Still, many analysts downplayed the significance of the deal, claiming it was just one tiny step on what will be a long road to ending the dominance of the U.S. dollar. As the reigning world reserve currency for decades, they say, it will take many years for the dollar to finally lose its valuable status.

“While there’s a wider story there of whether it changes the role of the dollar as a reserve currency, that’s much more questionable,” Deutsche Bank currency strategist Alan Ruskin was quoted as saying by CNBC. “It would be a very, very small step in that direction.”

But examined together with other recent announcements and current trends, the process is likely well underway, say experts. And with countless prominent world leaders and global institutions calling for an end to the dollar’s privileged position, the end might come sooner than most mainstream analysts expect.

In August, the communist Chinese dictatorship blasted U.S. policymakers. The regime called for global supervision of the dollar and eventually the creation of a global currency. In April, leaders of the so-called “BRICS” — Brazil, Russia, India, China, and South Africa — also demanded a new international monetary system.

Meanwhile, European Union officials took the opportunity offered by this week’s Japan-China currency deal to tout the imploding euro. "These are developments that show it's good that we have a unified Europe. United, Europe is the strongest economic area in the world,” claimed German Finance Minister Wolfgang Schaeuble after the announcement. “We have good chances to pursue our interests and then the opportunity to implement them in the world."

The value of the Chinese yuan is still highly controlled by authorities. Among other problems, it is not readily convertible, diminishing any potential role it may be able to assume in the global economy — at least for now. However, if the regime in Beijing were to loosen its grip over foreign exchanges, that could change quickly.

The effect of such a move would immediately reverberate across Asian markets and the world. And the U.S. dollar, along with the entire American economy, would almost certainly be the primary victims.


Oh dear me what a shame for Americans

---------- Post added at 07:01 PM ---------- Previous post was at 06:59 PM ----------

Last I heard Foxnews was not Russian

have done but you have chosen to ignore them lol maybe they are above your paygrade now that you opened that door

New World Currency !!! - YouTube

 

[fallstuff]

What the Chinese and the Japanese did will have an impact on the $ . Nobody wants the $ to freefall. A gradual move from a single reserve currency is in works, perhaps not in the world of fanboys.

 

[lem34]

Nouriel Roubini's Home Page

Nouriel Roubini is an American Jewish economist I don't think he has any contract with RT
Professor of Economics
and International Business
Stern School of Business, New York University
E-Mail: nroubini@stern.nyu.edu

--------------------------------------------------------------------------------
Other current positions:
* Research Associate, NBER
* Research Fellow, CEPR
Former Positions:

* Advisor to the U.S. Treasury Department, July 2000 - June 2001
* Senior Advisor to the Under Secretary for International Affairs; Director of the Office of Policy Development and Review (U.S. Treasury) , July 1999 - June 2000
* Senior Economist for International Affairs, White House Council of Economic Advisers, 1998-1999

Nouriel Roubini: The Renminbi Could Be the Global Reserve Currency

Big Think Editors on December 14, 2010, 12:00 AM


Chinese-renminbi-yuan-versus-american-dollar2

"The downfall of the dollar may be only a matter of time," wrote NYU economist Nouriel Roubini in a 2009 New York Times Op-Ed article. Though it won't happen over night, he explained, "the Almighty Remnimbi" may soon replace the dollar as the next global reserve currency.

And in his Big Think interview, Roubini lays out the four things that will need to happen for the Renminbi to supplant the dollar:

Roubini, who famously forecast the Great Recession, believes this is not a matter of if but when. "Traditionally, empires that hold the global reserve currency are also net foreign creditors and net lenders," he wrote in The Times. "The British Empire declined—and the pound lost its status as the main global reserve currency—when Britain became a net debtor and a net borrower in World War II. Today, the United States is in a similar position. It is running huge budget and trade deficits, and is relying on the kindness of restless foreign creditors who are starting to feel uneasy about accumulating even more dollar assets."

And what will this mean for the United States? If countries around the world were to diversify their reserve holdings to include more yuan (the individual unit of the currency Renminbi) and fewer dollars, America would no longer enjoy the rates at which it borrows from other countries, and which have allowed the U.S. to finance massive deficits for lengthy periods of time at low interest rates. If China borrowed and lent internationally in Renminbi, rather than in dollars, the Renminbi could eventually become a means of payment in trade and a unit of account in pricing imports and exports, as well as a store of value for wealth by international investors. America, in turn, would be stuck paying more for imports and the price of both our public and private debt would rise. On the plus side, this might be the only thing that disabuses America of its spendthrift ways.

The Renminbi Could Become the World

 

[fallstuff]

I like the Roubini comment about rhe Financial advisors/consultants.

 

[lem34]

What the Chinese and the Japanese did will have an on the $ . Nobody wants the $ to freefall. A gradual move from a single reserve currency is in works, perhaps not in the world of fanboys.

Oh I agree thats the best thing that could happen. AND I believe that is what is happening but some people are in denial in my opinion

 

[fallstuff]

Iran moved away from the $ only deals, Russia reqiures oil payment in Rubles, and now this. The world is changing albeit slowly.

 

[SinoChallenger]

Of course, China and Japan are the second and third largest economies on Earth. And their governments are the two largest foreign holders of U.S. government debt. So the deal has huge implications — at least in the long term.

I bet Uncle Sam feels the cold steel of a samurai blade stabbing right into the back!

What the Chinese and the Japanese did will have an impact on the $ . Nobody wants the $ to freefall. A gradual move from a single reserve currency is in works, perhaps not in the world of fanboys.

But there may be no other result if US is simply going to devote its entire economic production to its military to enforce its dollar on everybody, rather than doing any other sort of productive economic activity, that's ultimately where the root of the problem is.

US looks likely to go hyper.

 

[fallstuff]

I bet Uncle Sam feels the cold steel of a samurai blade through its shoulders from behind him!



But there may be no other result if US is simply going to devote its entire economic production to its military to enforce its dollar on everybody, rather than doing any other sort of productive economic activity, that's ultimately where the root of the problem is.

US looks likely to go hyper.

I don't think the China or anybody with a large chunk of $ denominated assets would want a freefall. A freefalling $ may just cause hoards of unintended consequences.

As for the size of the U.S military spending, it depends on hawks of both sides. Neocons sees the U.S role as one that of a righteous one, the liberal hawks see it as a way to bring down dictators. Both believe that U.S will get back on track and no such change is neccessary. The reason I am saying depends on the hawks because they set and control the agendas on these topics.

 

[SinoChallenger]

^ But China is already the #1 challenger to US hegemony. All we need to do is get everybody to start moving away from the dollar and then dump all our dollar to trigger hyperinflation in the US. Then US will need to close all its military bases in the world and that will create a huge power vaccum. In comes the Chinese carrier battle groups. Voila, you have a Pax Sinica enforced by an ocean superpower -- China -- whose currency the RMB is a major reserve currency around the world because it is the biggest trading nation in the world.

 

[fallstuff]

^^lol Maybe you are looking for a freefall of the $, but I doubt if it is at all in Chinas best interest. You really don't want to be the world police man !!! Trillions of dollars spent, not even a gallon of gas for me. Some big corps made loads of money, but thats about it.

Becareful of what you wish for !!

 

[SinoChallenger]

Prior to the Opium War in the 1830's, China was the undisputed naval superpower of East Asia. We projected power and influence in the East China Sea to trade with Okinawa and in the South China Sea to trade with all the South East Asian countries. To establish our control over Taiwan, we even fought a war against the Dutch in 1661.

Siege of Fort Zeelandia - Wikipedia, the free encyclopedia

So we are only going back to "normal times" when China resumes being #1 superpower in East Asia.

 

[below_freezing]

^^lol Maybe you are looking for a freefall of the $, but I doubt if it is at all in Chinas best interest. You really don't want to be the world police man !!! Trillions of dollars spent, not even a gallon of gas for me. Some big corps made loads of money, but thats about it.

Becareful of what you wish for !!

if the dollar freefalls, everyone gets hurt, but some get hurt more than others. Whoever gets hurt least (not gonna be the US) wins.

 

[Hello_10]

^^lol Maybe you are looking for a freefall of the $, but I doubt if it is at all in Chinas best interest. You really don't want to be the world police man !!! Trillions of dollars spent, not even a gallon of gas for me. Some big corps made loads of money, but thats about it.

Becareful of what you wish for !!

China will be the biggest loser if US dollar faces free fall. Their over 60% of foreign reserve, at $3.4tn, is in terms of US$ and if US$ collapse, overall value of Chinese foreign reserve will also collapse. China bought too much foreign currencies, mainly US$, just to keep Yuan lower to support export but they will have to pay a big price of it, if US$ collapse