Has the Dollar ALREADY Lost Its Status As World Reserve Currency?

George Washington's picture

Washington’s Blog

These are headlines from the past 2 days:

It's
not yet clear whether the Renminbi, gold, SDR, Bancor or something else
will eventually take the throne of the new world's reserve currency. See this and this.

And many settlements are still, obviously, being made in dollars.

But
there is at least an argument that the dollar has already lost its
status as world reserve currency, even if there is no ready replacement
to jump into the breach.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
TheMonetaryRed's picture

ON THE OTHER HAND:

Mexican Dollar Deposits Down 75% In Two Months!

http://www.bloomberg.com/news/2010-11-09/money-laundering-crackdown-cuts...

Probably nothing to do with Bernanke, though.

bubba1231's picture

Anyone who reads zerohedge should know that George Washington has posted articles claiming that OBL did not carry out 9/11 - in fact it was a conspiracy carried out by our government.  This is offensive and until he is banned from ZH there should be a complete boycott.  It is not a matter of free speech.  It is plain pathetic

Cognitive Dissonance's picture

You really do need to work on your "righteous indignation" skit if you're going to get much play here on Zero Hedge. This isn't the Yahoo boards and you're working with people who's IQ is well above 100. So you should try to work in some intelligent discourse if you wish to be taken seriously.

Just thought you should know.

BTW, maybe you would like to read my latest article? I see dead people (OBL) as government boogie monster props in the dark as well. Come on over and insult me. I'd love the company.

http://www.zerohedge.com/article/american-coup-d%E2%80%99%C3%A9tat-%E2%80%93-first-world-nation-style

DaveyJones's picture

guess we'll have to ban 1/2 of NY from this site

 

Half of New Yorkers Believe U.S. Leaders Had
Foreknowledge of Impending 9/11 Attacks and
"Consciously Failed" To Act;

66% Call For New Probe of Unanswered Questions
by Congress or New York's Attorney General,
New Zogby International Poll Reveals

(Utica, NY) - On the eve of a Republican National Convention invoking 9/11 symbols, sound bytes and imagery, half (49.3%) of New York City residents and 41% of New York citizens overall say that some of our leaders "knew in advance that attacks were planned on or around September 11, 2001, and that they consciously failed to act," according to the poll conducted by Zogby International. The poll of New York residents was conducted from Tuesday August 24 through Thursday August 26, 2004. Overall results have a margin of sampling error of +/-3.5.

(DOWNLOAD COMPLETE BREAKDOWN OF RESULTS)

akak's picture

Bubba1231 chose his name well.  His call to ban GW for excercising his right to free speech was the most laughably inept, and morally reprehensible, show of intolerance and advocation of suppression of opinion I have seen, well, since the Bush cabal was still in power. 

And just for the record, BubbaGump, I find it more likely that our own criminal and sociopathioc governing elite orchestrated the Sept. 11, 2001 attacks than that they were organized by some cave-dwelling fanatics led by a terminally-ill and never-seen boogeyman.

 

George Washington's picture

I am offended that you are offended.

But - in all seriousness - I'm not sure if there is much difference between Bin Laden and ... um ... others:


Former FBI Translator: Bin Laden Worked for U.S. Right Up Until 9/11

 

tony bonn's picture

"But there is at least an argument that the dollar has already lost its status as world reserve currency, even if there is no ready replacement to jump into the breach."

that's what gold is for....anything else is but another fraud.

RECISION's picture

Its all relative.

You may be in the shit, but you really, really want your head above it.

knukles's picture

Duh....

The flight to quality trade during times of excess financial duress will remain for the time being, to the US dollar.  It just is what it is.

For the past several years however, there has been a steady migration to other currencies, in particular those that have adhered to derivations of the English common law system (Australia, Canada, NZ, etc.) where the Rule of Law has Remained Sacrosanct. 
Not so in the US. 
The government abrogates contractual rights dismissing senior secured bondholders in favor of unsecured creditors with respect to GM and Chrysler.
The government in future dissolutions of FDIC insured institutions reserves the right to treat multiple holders of the same class, indeed issue of debt, differently.
The government is actively debasing the US dollar and everybody knows it.  Even the proverbial shoe shine boy.

Debate the veracity of the US currency's role as the world reserve?

Is it OK to pick up a turd by its clean end?

doomandbloom's picture

wonder how many years till we revert to full scale bartering...damn its gonna be difficult...we actually need to produce something to exchange..all this fake money will do us no good...

I am going through Cypher's ( of Matrix) emotions thinking of that event...

sandorgb's picture

Not going to happen. Think "new currency, sovereign money." Currency crises are commonplace throughout history. The USD had a good run, and hopefully the next one will too. This is a "managed collapse." It will take several years to play out, but we are going forwards, not backwards. Yes, the median living standard in the USA will fall in the coming years, but this is a necessary part of global rebalancing. It's the endgame of American Empire, but not the end of modern civilization. 

Triggernometry's picture

The dollar is now a lame duck.

janchup's picture

And Obama mirrors the dollar.

TheMonetaryRed's picture

Simple answer: No.

USD and and US Treasury holdings have continued to skyrocket.

Holdings of Agencies have gone down, but not net dollar holdings.

steve from virginia's picture

Dollar oversold or what???

Rogue Economist's picture

A transparent attempt to squeeze out dollar shorts.  Somebody is going to get left holding a very big bag.

RE

TheMonetaryRed's picture

If we get a really bad credit even in Europe, the dollar is WAY oversold.

BeerGoggles's picture

Time to get long the dollar then. Just waiting for Time magazine to print "end of the dollar"...though I doubt they'll do that.

NoBull1994's picture

this jackass george washington copied the tyler durden post from earlier today...

Herd Redirection Committee's picture

I believe the term is 'referenced', not copied.

Any way, this 'currency war' will definitely play out over a number of stages.  That is, currencies will take turns devaluing relative to the others.  The USD is having its plunge, then the Euro will take a plunge, so on and so forth.  But don't expect them to increase in value in terms of gold!

Fiat currency relies on faith, and when you print $600 billion and say you will do it again, well, people lose faith.  Period.  Stock up on essentials, then go for precious metals.

http://psychonews.site90.net

We just ran part 3 of our story on the Currency Wars, and previously ran a story about how loss of reserve currency status could lead to hyperinflation  (as both result from a loss of confidence) Misconceptions: Hyperinflation & The Oligarchy