Out of the foreign currency reserves in the world, 60% are in United States (U.S.) dollars. The largest economies are creating agreements to avoid using U.S. dollars for international trade. This shift will cause huge negative problems for U.S. citizens. The second-largest economy in the world is China. Their rapidly growing economy is predicted to surpass the U.S. economy by 2015-2016. 10 Reasons Why the Dollar Is About to End as the World Reserve Currency
#1: Japan and China to Use Own Currencies In Trade
In 2013 the second-largest economy on earth (China) and the third-largest economy on the planet (Japan) agreed to use their currencies (rather than U.S. dollars) to trade with each other. The U.S. media ignored this significant agreement completely.
#2: The BRICS Plan to Use Own Currencies to Trade With Each Other
Under a statement by a news source from India. “The five emerging economies of BRICS – Brazil, Russia, India, China, and South Africa -signed two pacts for promoting intra-BRICS trade… The agreements will enable credit facilities in local currency for businesses of BRICS countries. BRICS trade has grown rapidly at 28% for the last five years but is still very below the five economic powerhouses’ full potential.”
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#3: Russia and China Use Own Currencies for Trade
For over a year now, Russia and China have used their currencies to settle trades with each other rather than settle trades in the U.S. dollar, as was done for decades. This is important for investors as they can profit from currency exchanges when they trade right.
#4: Use of Chinese Currency Growing In Africa
Africa’s biggest trading partner since 2009 was China. Meanwhile, China seeks to encourage Chinese currency in Africa by buying partnerships in existing mines and businesses.
Africa’s largest bank stated:
“We expect at least $100 billion (about R768 billion) in Sino-African trade… to be settled in the renminbi by 2015.” (the renminbi is the Chinese dollar-the Yuan).
#5: United Arab Emirates (UAE) and China to Use Own Currencies in Trade
The United Arab Emirates agreed with China to ditch the U.S. dollar and begin using their own countries’ currencies to settle oil transactions. This increases the threat to the petrodollar system even though the UAE is not a large country.
#6: India Buys Oil from Iran with Gold
Iran has been one of the nations leading the charge to use the U.S. dollar for international trade. India is now reportedly using gold to pay for oil from Iran.
#7: Saudi Arabia Likely to Abandon Use of Petrodollar for China Deals
China is the largest importer of Saudi Arabia’s Oil! A huge oil refinery in Saudi Arabia is being built by a China and Saudi Arabia agreement. Since China is their premier customer, how long will Saudi Arabia hang with the petrodollar? Not long, most analysts predict.
#8: The United Nations (UN) Pushes for a New World Reserve Currency
The United Nations has called for replacing the U.S. dollar as the world’s reserve currency. A key report envisions “a new global reserve system… that no longer relies on the United States dollar as the single major reserve currency.”
#9: IMF Proposes New World Currency to Replace U.S. Dollar and Other Currencies!
The International Monetary Fund (IMF) released a report calling for a new international currency to replace the U.S. dollar. The report titled “Reserve Accumulation and International Monetary Stability” went so far as to propose the name “Bancor” be the name of the future global currency. They suggested that a central bank be responsible for issuing the new currency and regulating currency trades between countries.
#10: The Rest of the World Hates the United States
The dramatic shift in global sentiment [against] the United States cannot be underestimated. The United States was the most loved nation decades ago, but today we are the most hated. If you find this hard to believe, take a trip abroad. Americans get treated rotten in Europe (where our friends are supposed to be). Most American travelers wear a Canadian pin on their shirts to pretend they’re Canadian so they don’t get treated rotten traveling in Europe. The United States is so unpopular now this provides other nations a stronger incentive to desert the dollar for international trade settlements.
What will happen to the U.S. dollar as the world reserve currency ends?
Very radical changes are in store for the lifestyle in the United States upon the dollar’s demise. “When this economic tsunami hits America, it will make the 2008 recession and aftermath look like a slight bump in the road.” Very undesirable changes will be forced on the lifestyle in the U.S. through the following:
1. high-interest rates on cars and mortgages,
2. massive inflation,
3. increasing hikes in the cost of gasoline, clothing, and food,
4. financing its debt will be much harder and cost much more.
Conclusion
Thankfully, these important facts will not happen overnight, but it is important to recognize they are picking up steam. Under approaching economic conditions, a large global shift to abandon the U.S. dollar can become a landslide overnight and catch millions of American families holding a bag full of nearly worthless U.S. dollars, don’t be one of those. It is predicted by economists to gather speed in the next several years, so watch out for it and be ready! Investors can make money trading currencies if they study the pros and cons beforehand. Not only can you read more amazing articles, but you may also be lucky to win product giveaways. If you want to know more about related subjects, subscribe to the newsletter of Josh’s blog. but also
