A Shocking First: Mainstream Media Rushes To Defend Dollar Reserve Status

Tyler Durden's picture


One can't help but wonder just how concerned the powers that be are becoming when such an esteemed mainstream media outlet as Bloomberg News would deem fit to defend the almighty US Dollar. "There are always people who say the dollar is going to be replaced, but it hasn't happened," chides one strategist (clearly forgetting that nothing lasts forever). As growing concerns of "exorbitant privilege" spread from the usual anti-imperialist foes (Russia and China's de-dollarization) to close allies like France and now to the world's growth engine - BRICS, it seems defending what was previously unquestionable itself should be grounds for alarm...

As Bloomberg reports,

The dollar hasn’t budged from its top spot for the past three decades, withstanding repeated efforts to unseat it. Almost 90 percent of the $5.3 trillion a day in foreign-exchange transactions last year involved the dollar, the same share as in 1989, data from the Bank for International Settlements show. More than 80 percent of trade finance was done in dollars in 2013, according to Swift, a global financial-messaging network.




A week after the BNP Paribas plea, French Finance Minister Michel Sapin urged European governments to promote the euro more in international transactions. While he said he wasn’t fighting “dollar imperialism,” his comments echoed those of predecessor Valery Giscard D’Estaing, who coined the term “exorbitant privilege” in 1965, referring to the benefits the U.S. received for the dollar’s status.




“The Fed is the central bank of the world,” said Joseph Quinlan, chief market strategist at Bank of America Corp.’s U.S. Trust, which oversees about $380 billion. “The rest of the world benefits from the dollar standard as well.”




“The U.S. dollar remains dominant in traditional trade finance, and we don’t see a replacement any time soon,” said Astrid Thorsen, the head of business-intelligence solutions at Swift in Brussels. “The yuan is gaining traction, and it has dethroned the euro from second place. But the competition has been between currencies other than the dollar.”




Companies, consumers and central banks around the world prefer the dollar to other currencies, including the euro and yen, because they trust the Federal Reserve and the U.S. government to back it, according to Marc Chandler, the chief currency strategist at Brown Brothers Harriman & Co.


“There are always people who say the dollar is going to be replaced, but it hasn’t happened,” said Chandler, who’s based in New York. “The biggest threat to the dollar’s dominance is the U.S. deciding to abdicate one day, not others complaining about it for this reason or that.”

But not everyone is so exuberant...

“The dollar’s role will decline gradually and modestly over time, but it will still remain as the dominant currency,” said Bergsten, founder of the Peterson Institute for International Economics in Washington and a former Treasury Department official. “The euro has already claimed a central role, and the yuan keeps getting more important. Neither will likely replace the dollar, though.”

*  *  *

Remember, nothing lasts forever...


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Wed, 07/16/2014 - 11:39 | 4962730 LawsofPhysics
LawsofPhysics's picture

Tick tock motherfuckers...

(still no reason why you can't profit from this slow, yet inevitable demise, it's still FIAT WORLD after all)

Wed, 07/16/2014 - 11:42 | 4962737 nope-1004
nope-1004's picture

Will probably always be a fiat world in one form or another.  But during the coming transition, many will be wiped out as the MSM have a large proportion of the population fooled as they spew the .gov agenda and lies.


Wed, 07/16/2014 - 11:44 | 4962760 Pinto Currency
Pinto Currency's picture



..."There are always people who say the dollar is going to be replaced, but it hasn’t happened,” said Chandler, who’s based in New York. “The biggest threat to the dollar’s dominance is the U.S. deciding to abdicate one day, not others complaining about it for this reason or that.”....


Denial is not analysis.

Wed, 07/16/2014 - 11:48 | 4962773 Citxmech
Citxmech's picture

It hasn't happened yet, therefore, it will not happen ever.

Sounds logical to me. . . 



Wed, 07/16/2014 - 11:56 | 4962807 Clint Liquor
Clint Liquor's picture

“The biggest threat to the dollar’s dominance is the U.S. deciding to abdicate one day......"

Yes, one day the FED will say " It's been lots of fun being like GOD and having the ability to create wealth from nothing. But, by golly, it someone else's turn." 

Wed, 07/16/2014 - 11:57 | 4962813 wallstreetapost...
wallstreetaposteriori's picture

looks like the US dollar's rerserve status is going to be the shortest in history....c'mon man even France held it longer...

Wed, 07/16/2014 - 12:30 | 4962970 Pinto Currency
Pinto Currency's picture



In the Reserve Currency Status chart above, how many of those currencies were really just gold or silver with a country's currency name tagged to them.

Wed, 07/16/2014 - 13:14 | 4963237 eclectic syncretist
eclectic syncretist's picture

And tanking the dollar will not bother the Fed or Big Banksters (who are causing it, with political approbation) one iota, ........ unless of course China and Russia ban them from transacting in their currencies for being the criminal organizations that they are.

Wed, 07/16/2014 - 13:22 | 4963288 Latina Lover
Latina Lover's picture

The Federal Reserve Dollar is eternal. Just ask Yellen, she would never lie, LOL

Wed, 07/16/2014 - 14:57 | 4963777 Serfs Up
Serfs Up's picture

..."There are always people who say that I am going to die, but it hasn’t happened."

Seems like a bullet proof analysis to me.

Wed, 07/16/2014 - 15:52 | 4964040 ebear
ebear's picture

"how many of those currencies were really just gold or silver with a country's currency name tagged to them."

Exactly.  The chart is complete BS, and I'm tired of seeing it trotted out every few weeks.   You want to talk about manipulation?   How about using popular anti-dollar memes to up your hit count?

Selective skepticism is the worst kind of intellectual dishonesty because at heart you're not only fooling others, but also yourself.  A true skeptic questions everything, starting with their own assumptions and deeply held beliefs.

Wed, 07/16/2014 - 12:47 | 4963075 Volaille de Bresse
Volaille de Bresse's picture

"looks like the US dollar's rerserve status is going to be the shortest in history....c'mon man even France held it longer..."

Yeah can you imagine OUR intelligence and finesse married to your ruthlesss manners and your big size. We'd RULE the world!

Reread this sentence and you'll realize this is not exactly a compliment, mon ami...

Wed, 07/16/2014 - 13:16 | 4963249 gcjohns1971
gcjohns1971's picture

Those who propose, as you have, superior intelligence by reason of Geography, disprove their own thesis.

Wed, 07/16/2014 - 14:12 | 4963546 Coke and Hookers
Coke and Hookers's picture

Intelligence and geography have considerable correlation. The further away from the equator a group/tribe of people evolved into current "state", the smarter they are. This relationship is well known. Obviously not to you though - but apparently it doesn't stop you from making statements about stuff you know nothing about.

Wed, 07/16/2014 - 15:34 | 4963962 Christophe2
Christophe2's picture

Smaller groups seem to indicate more individual independence and far less coercion/dominance.

If you are talking about cunning, sophistry, manipulation, mind kontrol and systemic abuse as the ideal forms of intelligence, then yes, France+UK+US+Germany = the 'smartest' sociopaths on the planet and the biggest, most abusive gangs / territories.


Wed, 07/16/2014 - 14:35 | 4963649 GubbermintWorker
GubbermintWorker's picture

Aren't you glad that you're speaking French instead of German?

Wed, 07/16/2014 - 15:43 | 4963997 Miles Ahead
Miles Ahead's picture

Ahhh, no... why?  I must have missed something...

Wed, 07/16/2014 - 13:05 | 4963178 Mrmojorisin515
Mrmojorisin515's picture

as information moves quicker, so does time

Wed, 07/16/2014 - 11:59 | 4962821 Herd Redirectio...
Herd Redirection Committee's picture

"Others have been wrong so far, so clearly, they are, and always have been wrong."

Being early is being wrong only in the world of options.

Wed, 07/16/2014 - 12:02 | 4962836 Headbanger
Headbanger's picture

Something I said??

Wed, 07/16/2014 - 12:14 | 4962873 LawsofPhysics
LawsofPhysics's picture

...and we get to keep all the wealth and ownership we stole.

Wed, 07/16/2014 - 12:20 | 4962917 vulcanraven
vulcanraven's picture

The textbook definition of normalcy bias.

Wed, 07/16/2014 - 12:36 | 4962956 Reptil
Reptil's picture

Ha ha you're right.
It's quite simple: "Eventually" some countries are not going to use it anymore. the dollar then de facto ceases to be the global reserve currency.
It will then be a regional reserve currency.
The banking cartel will of course try to prevent this from happening.
I think the denail is to keep the dream for those participating, alive, a little longer. They'll still call it the "world reserve currency" in the region. ;-)

I take it, the AMOUNTS in this article are in USD? What is to keep them from using another currency in case there's more Fed antics? It would make sense.

There goes the "new world order". Down the fucking drain.

Wed, 07/16/2014 - 11:48 | 4962774 Berspankme
Berspankme's picture

I love this country but all the assholian buggering by DC and the cocksuckers on Wall Street deserve whatever comes at them. I pray it's armed revolutionaries

Wed, 07/16/2014 - 11:51 | 4962786 NOTaREALmerican
NOTaREALmerican's picture

Re:  I pray it's armed revolutionaries

Oh, it will be, it will be.    But don't forget one person's freedom-fighter is another person's evil-doing trrrrsss.

(And always remember: yer either wid us rrr again us)

Wed, 07/16/2014 - 12:18 | 4962898 Al Huxley
Al Huxley's picture

Well, so far what's coming at them is all the wealth, civil liberties, freedoms and security of 99.9% of the population. 

Wed, 07/16/2014 - 11:56 | 4962799 Kirk2NCC1701
Kirk2NCC1701's picture

@LoP: "Tick tock motherfuckers.." 

Note that all dads are MFers, but not all MFers are dads.  ;-)

Seriously though, the Petrodollar's "Days of Wine & Roses" are coming to an end.  Like all things, good or bad.

"Change is the only constant."  Although we seem to have less of it these days, but plenty of bills.  ;-)

Wed, 07/16/2014 - 12:11 | 4962870 LawsofPhysics
LawsofPhysics's picture

Correct, my point was simply that it reamins a fiat planet and I don't see any country or government rushing to actually put a commodity-backed currency in place.  Lots of jawboning but no concrete action.

Wed, 07/16/2014 - 13:16 | 4963255 RaceToTheBottom
RaceToTheBottom's picture

The benefits of the existing system are far too much in comparison to the Pain.   Until that changes, nothing changes.

Wed, 07/16/2014 - 12:55 | 4963130 Da Yooper
Da Yooper's picture
A Shocking First: Mainstream Media Rushes To Defend Dollar Reserve Status


what did ya expect


the tribe that owns the banks also owns


the media


time for the GDP to wake the fuck up

Wed, 07/16/2014 - 13:00 | 4963151 SMG
SMG's picture

That "tribe"  would be the Luciferians.  Pitchforks need to be pointed in the right direction. 

Wed, 07/16/2014 - 13:42 | 4963399 Herd Redirectio...
Herd Redirection Committee's picture

You forgot the 'Zionist Bankster' tag at the end.

Wed, 07/16/2014 - 14:29 | 4963619 Lucifers God
Lucifers God's picture

Silly. Now you're just being hysterical aren't ya?

Wed, 07/16/2014 - 11:40 | 4962733 syntaxterror
syntaxterror's picture

But, but, but this $19 trillion dollar debt ($100+ trillion with liabilities) is backed by the full, faith, and credit of al-Barack Hussein bin Obama's government!

Wed, 07/16/2014 - 11:49 | 4962780 Herd Redirectio...
Herd Redirection Committee's picture

The government has bought the consent of the people.

Only problem?  They paid WITH PROMISES.

Think about that for a second, and you will know how this ends.

Wed, 07/16/2014 - 11:54 | 4962800 NOTaREALmerican
NOTaREALmerican's picture

Will it be different with the next government?

Did al-Barack Hussein bin Obama create all debt?

Perhaps we need a show of hands of all the people living off of Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState – and (now) Big-Space for that last 60+ years.


Wed, 07/16/2014 - 12:21 | 4962920 SMG
SMG's picture

You know I wonder if the Oligarchs are going to impeach him soon, and then use the excuse of government in crisis to crash the dollar.  Just a thought, maybe after the election in Nov.

Wed, 07/16/2014 - 13:14 | 4963233 JailBank
JailBank's picture

I fully trust Nancy, John, and Harry with my finacial health and well being.

Wed, 07/16/2014 - 11:41 | 4962735 Racer
Racer's picture

Reminds me very much of:

'Sub-prime is well contained'


'US will never be downgraded'

Wed, 07/16/2014 - 11:55 | 4962806 Colonel Klink
Colonel Klink's picture

Fuck Bernanke and that little rat fink Geithner.

Wed, 07/16/2014 - 12:07 | 4962853 WhackoWarner
WhackoWarner's picture

Love that.  Rat Fink.  Have not heard it in years.  You rat fink.

Wed, 07/16/2014 - 12:32 | 4962997 Colonel Klink
Colonel Klink's picture

A perfect description for that little cocksucking bastard.

Wed, 07/16/2014 - 11:42 | 4962744 krispkritter
krispkritter's picture

Anthroprogenic Reserve Currency Change Deniers!

Wed, 07/16/2014 - 13:03 | 4963165 Winston Churchill
Winston Churchill's picture

You missed out exceptional.Must fit in there somewhere.

I'll bet the first thing this analyst did this am was buy gold.

I'm all right Jack,now lets feed the serfs some slops.

Wed, 07/16/2014 - 11:42 | 4962747 RealityCheque
RealityCheque's picture

Protesting a bit too much, me-motherfucking-thinks!

Wed, 07/16/2014 - 11:44 | 4962754 JustObserving
JustObserving's picture

Here is what the Chinese have to say about BRICS bank:

Developing countries' long-held dream of forming a bank finally came true this week as the emerging-market bloc BRICS announced Tuesday the establishment of a development bank and a contingent reserve arrangement (CRA) at their sixth summit in the Brazilian city of Fortaleza.

The bank, created by five members of the BRICS -- Brazil, Russia, India, China and South Africa -- is aimed at "mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies," as it is manifested by the Fortaleza Declaration.

The exhilarating outcome is due to the joint efforts from BRICS members to deepen their economic cooperation and tap their potential by innovative means and methods.


Wed, 07/16/2014 - 11:46 | 4962755 Yen Cross
Yen Cross's picture


'When it becomes serious, you have to lie'...

  ~Jean-Claude Juncker, President-elect of the European Commission~

Wed, 07/16/2014 - 14:59 | 4963788 Imminent Collapse
Imminent Collapse's picture

Love that he actually said that.  Of course, it has been true forever, but few actually went on the record acknowledging it.

Wed, 07/16/2014 - 11:45 | 4962757 buzzsaw99
buzzsaw99's picture

as long as there are still pieces of the usa middle class to sell off they're probably right

Wed, 07/16/2014 - 11:46 | 4962764 agstacks
agstacks's picture

"The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."

Benny Bubbles Nov 2012


“The rest of the world benefits from the dollar standard as well.”

Oh, yeah?

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