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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. . . 

 

//sarc

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.

Bravo!

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.
http://www.reuters.com/article/2014/07/16/us-brics-summit-bank-idUSKBN0F...

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'

or

'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.

http://news.xinhuanet.com/english/indepth/2014-07/16/c_133488626.htm

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

AND...

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

Oh, yeah?


Wed, 07/16/2014 - 11:47 | 4962765 El Vaquero
El Vaquero'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.”

Tell me, Mr Chandler, why is it that the dollar must be replaced?  I know of no natural law that states that for one reserve currency to die, another must be born.

Wed, 07/16/2014 - 11:49 | 4962779 Citxmech
Citxmech's picture

There can be only one!

http://www.youtube.com/watch?v=sqcLjcSloXs

 

Wed, 07/16/2014 - 12:41 | 4963043 F0ster
F0ster's picture

The dollar won't die but it wi be worth much less internationally.

Wed, 07/16/2014 - 12:49 | 4963100 El Vaquero
El Vaquero's picture

It's a debt based fiat currency.  That means that it requires sustained growth, and growth is not permanently sustainable in a finite world.  The death of the dollar is a mathematical certainty.  It is possible that we'll wind up something called a "dollar," but it will not be what we have today, much like the dollar of today is very different from pre-1971 dollars.  But don't bank on that transition being nearly as smooth as the inflation of the 1970s and the rise of the petrodollar system.

Sat, 07/19/2014 - 17:06 | 4963940 Supernova Born
Supernova Born's picture

The largest denomination circulating currency (the $100) is a "$15 (fifteen) dollar bill" in 1967 buying power.

In 1967 a $20 had 33% more purchasing power than a $100 dollar bill has today.

...and that's per the Fed's "CPI calculator".

 

Wed, 07/16/2014 - 11:47 | 4962766 AnAnonymous
AnAnonymous's picture

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.

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.

...

“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

_______________________________

Dominant? One way to put it. Another way is to tell that the other currencies pratically do not exist.

Wed, 07/16/2014 - 11:55 | 4962792 nope-1004
nope-1004's picture

"withstanding repeated efforts to unseat it."

 

Name 3 concerted agreements in the last 30 years, prior to 2012, to "unseat" the dollar?

 

Wed, 07/16/2014 - 12:13 | 4962878 agstacks
agstacks's picture

Iraq and Libya come to mind. 

Wed, 07/16/2014 - 12:25 | 4962947 nope-1004
nope-1004's picture

Ya, any Muslim nation selling oil in non USD is subject to invasion as per Saudi and US agreements.  That's known.  But I would be interested though in having AnA cite a formal agreement between 3 or more nations to "unseat" the dollar, as he claims there have been repeated attempts similar to this one that haven't worked.

 

Wed, 07/16/2014 - 12:34 | 4963004 AnAnonymous
AnAnonymous's picture

'Americans' are all 'american' 'americans' but some are more 'american' than others.

That was quotation from the article.

The only thing that was added is that describing a 80 to 90 pc position as dominant is somehow a bit of an understatement.

If 'americans' want justification of what their free press writes, they'd better adress it rather than a person quoting it.

But, hey, that would suppose that 'americans' are not 'american' so yeah...

Wed, 07/16/2014 - 12:02 | 4962830 Space Animatoltipap
Space Animatoltipap's picture

The $ political faith currency system is like heroine. It will produce hell also in the Western countries. Right now people in the western countries still rely very much on the 1984 MSM and government info. That's their ignorance. And huge risk.

Wed, 07/16/2014 - 13:04 | 4963131 Reptil
Reptil's picture

Yes, this is an important issue. And that's why knowledge spreading (the "end the fed" movement) is such a dangerous thing for the status quo. Since it's existence relies on system-wide control. Which remains unbroken. It seems people are reluctant to let it go, because part of the lie is that their position, their prosperity, and happiness relies on the status quo continuing.

Wed, 07/16/2014 - 11:47 | 4962769 Gringo Viejo
Gringo Viejo's picture

Such a transparent attempt to assure all is well.
Sad.

Wed, 07/16/2014 - 11:47 | 4962770 Tjeff1
Tjeff1's picture

First of all... The dollar WILL lose its status.  When is hard to tell 2 to 5 years... my guess.... BUT..

Nothing has to replace the dollar for the US to be up shits creek. 

It just has to hit the tipping point where the dollar trust is undermined.  All the countries know this and all are watching.  Price is made on the margin and when some countries start to sell and the "tipping point" is hit there will be an avalanche of dollar paper selling.  It will be quick and painfull.  There will be lots of crying and dying.

Wed, 07/16/2014 - 11:50 | 4962782 Quinvarius
Quinvarius's picture

If you allow dollars in your country, Obama uses them to pay people to destabilize it.  That si one good reason not to use it, outside of economics.  And as far as i can tell, no one is immune to this "pay for chaos" scheme.  It does not appear to have any sanity or logic directing it.

Wed, 07/16/2014 - 11:52 | 4962788 Tjeff1
Tjeff1's picture

 

 

 

2014  -  "There are always people who say the dollar is going to be replaced, but it hasn’t happened,”

2007  - "There are always people who say housing is going to go down, but it hasn't happened,"

Wed, 07/16/2014 - 12:21 | 4962919 alangreedspank
alangreedspank's picture

What hasn't happened, hasn't happened yet! Brilliant!

Wed, 07/16/2014 - 11:52 | 4962790 Who was that ma...
Who was that masked man's picture

The writing is on the wall, for those willing and able to read it.

Wed, 07/16/2014 - 13:08 | 4963203 Winston Churchill
Winston Churchill's picture

In eight foot high characters,trouble is its in cyrilic, and mandarin..

Wed, 07/16/2014 - 14:12 | 4963534 Z_End
Z_End's picture

The End is Near...

O fim está próximo ...

Konets blizok ...

Anta nika?a hai...

Dàod? shì jìnle......

Die einde is naby ...

Das Ende ist nahe ...

Wed, 07/16/2014 - 11:52 | 4962791 KnuckleDragger-X
KnuckleDragger-X's picture

There really isn't a replacement reserve currency out there right now, they are all pretend currencies. Maybe when the smoke clears and the dust settles after the great international economic implosion something will float to the surface but I'm not holding my breath.

Wed, 07/16/2014 - 11:59 | 4962817 Ariadne
Ariadne's picture

Gold bitchez

Wed, 07/16/2014 - 12:29 | 4962974 nope-1004
nope-1004's picture

"There really isn't a replacement reserve currency out there right now, they are all pretend currencies."

 

Put yourself in China's shoes.  If you were planning a replacement currency/transaction system, would you let it be known in advance of the incumbent reserve currency crashing?  From all indications, a replacement is in the works and ready to be launched.

 

Wed, 07/16/2014 - 13:06 | 4963187 gcjohns1971
gcjohns1971's picture

Q: "If you were planning a replacement currency/transaction system, would you let it be known in advance of the incumbent reserve currency crashing?"

A: Yes.  Fiat currency rests on three pillars: 1) Misplaced Confidence.  2) Lack of more suitable alternatives.  3) Legal Tender laws.  

Announcing the more suitable basis of an alternate reserve currency attacks pillars 1 & 2.

Wed, 07/16/2014 - 12:01 | 4962827 Cashboy
Cashboy's picture

I would think that now the world is controlled by global countries there could be a world currency in the future for international transactions.

|Probably the USA would try and control that using the IMF as the front.

Wed, 07/16/2014 - 11:53 | 4962794 Colonel Klink
Colonel Klink's picture

Because they were instructed to!  Not because it's out of genuine concern.  Fuck the whole corrupt system.

Wed, 07/16/2014 - 11:53 | 4962796 Who was that ma...
Who was that masked man's picture

You don't need a weatherman to tell which way the wind blows.

Wed, 07/16/2014 - 11:54 | 4962798 lakecity55
lakecity55's picture

Dammit, where is the dead muppet photo?

Wed, 07/16/2014 - 11:55 | 4962801 alexcojones
alexcojones's picture

First comes the Talking Heads...

Then comes the Military Imbeds,

Then comes the Warheads,

Thanks to the Talking Heads.

Defending the Almighty Dollar.

And it ALL Began with the FED.

Now, Thanks to ALL, the Dollar is on its Deathbed....

Wed, 07/16/2014 - 11:55 | 4962802 kurt
kurt's picture

Ladder Reserve Chart Begs to be Retired

"Even indentured slaves got set free in 7 years."

New York. Overworked Reserve Currency Chart, aka "Charty" said today, "I'm sick and tired of being plastered all over the internets, especially that damn Tyler Durden! I'd kick him in his balls if I could, he sticks me up like an Andre the Giant poster, I'm sick of it." Charty is seeking legal representation in consideration of reimbursal for Chart Abuse, or Chart-aphelia.

Wed, 07/16/2014 - 11:55 | 4962803 Racer
Racer's picture

Since the propaganda has stepped up, then you know the dollar's demise as reserve currency has already started and well underway!

Wed, 07/16/2014 - 11:58 | 4962814 screw face
screw face's picture

Spell that BRIIICS............Bitchezzz

Wed, 07/16/2014 - 11:58 | 4962816 yogibear
yogibear's picture

The US dollar is backed by the full faith in the Illinois and Chicago political machine now in control of Washington DC.

 

Wed, 07/16/2014 - 12:05 | 4962847 kurt
kurt's picture

The US Dollar is backed by the full wrath of the Federal Reserve System!

Wed, 07/16/2014 - 11:59 | 4962819 IronShield
IronShield's picture

There will always be fiat for the purpose of exchange.  It's where the saving will be done that will be 'new'.  The West is setting up for a painful return to reality. 

I just hope that anger is vented in the proper direction without the need for me to have to act in a defensive capacity.  Looking at the people around me, that seems to be a less likely outcome with each passing day.

Wed, 07/16/2014 - 12:04 | 4962828 Tjeff1
Tjeff1's picture

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

Idiot can not see the shit stuck on his nose:

We abdicated in 1971 by failing to deliver gold and have printed trillions that the world has to absorb.  We have been abdicating for 43 years. 

Wed, 07/16/2014 - 12:01 | 4962829 p00k1e
p00k1e's picture

Drudge says, “Coyotes making over 1 Kilo of gold per week…” sneaking in foreigners.

A lot better than an employee sponsored 401K plan PLUS Pelosi is handing out refreshments

Wed, 07/16/2014 - 12:13 | 4962871 IronShield
IronShield's picture

I just might need to rethink my retirement plans.  Hmmm...

Wed, 07/16/2014 - 13:43 | 4963403 RaceToTheBottom
RaceToTheBottom's picture

See we need to count transactions like this and all those drug sellers and prostitutes so we can chisel down that 80% dollar usage.

Wed, 07/16/2014 - 13:47 | 4963434 headhunt
headhunt's picture

How can anything from Pelosi be refreshing?

Wed, 07/16/2014 - 12:02 | 4962831 ilikepies
ilikepies's picture

So dawn of the 7th world reserve currency.... Perhaps Christine Lagard isnt batshit crazy after all.  

 

Fuck you Krugman...

Wed, 07/16/2014 - 12:02 | 4962835 Quinvarius
Quinvarius's picture

So what stage of grieving is this for the loss of reserve currency status?  Judging by our actions in the world, we have moved beyond denial to anger.

Wed, 07/16/2014 - 12:04 | 4962839 Hongcha
Hongcha's picture

Interesting timing to break out the press asset on this topic.

Wed, 07/16/2014 - 12:04 | 4962841 SillySalesmanQu...
SillySalesmanQuestion's picture

Exceptional American arrogance being spouted that the dollar won't lose its reserve status. They are afraid of BRICS and what it may do to their 100 year monopoly...  END THE FED!!!

Wed, 07/16/2014 - 12:05 | 4962843 SMC
SMC's picture

Yet another leading indicator that the S is about to HTF.

Of course, after the event occurs, the same MSM will be wailing that "No one could have seen it coming!"

ROFL.

Wed, 07/16/2014 - 12:05 | 4962844 KidHorn
KidHorn's picture

This entire article is silly. How do you define what a reserve currency is? Is it the most widely held currency? If so, the USD is in no danger of being dislodged as everyone is drowning in it. The only thing that matters is the exchange rate and everyone is trying to devalue vs the USD so I don't see it's value dropping ay time soon.

Wed, 07/16/2014 - 12:47 | 4963085 Vooter
Vooter's picture

Oh, I see--so basically, whichever currency has the most bills in circulation wins? LOL! We'd better print another quadrillion so we can make sure that we "win"...

Wed, 07/16/2014 - 14:07 | 4963525 KidHorn
KidHorn's picture

You didn't unserstand a word I wrote.

Wed, 07/16/2014 - 12:48 | 4963093 rubiconsolutions
rubiconsolutions's picture

"The only thing that matters is the exchange rate and everyone is trying to devalue vs the USD so I don't see it's value dropping ay time soon."

You obviously never buy gasoline or go to the grocery store. For those of us that do however the value of the USD is in fact dropping. But hey, thanks for the brilliant analysis. 

 

Wed, 07/16/2014 - 14:06 | 4963518 KidHorn
KidHorn's picture

Your probably not aware of this but it's possible to have inflation and a stable currency at the same time. The two aren't mutually exclusive.

Wed, 07/16/2014 - 14:57 | 4963780 rubiconsolutions
rubiconsolutions's picture

"Your probably not aware of this but it's possible to have inflation and a stable currency at the same time."

You should look up the definition of stable. If you have inflation then you don't have stability. If you are stable you don't make asinine comments. 

sta·ble 1  (stbl)

1.

a. Resistant to change of position or condition; not easily moved or disturbed: a house built on stable ground; a stable platform.

b. Not subject to sudden or extreme change or fluctuation: a stable economy; a stable currency.

c. Maintaining equilibrium; self-restoring: a stable aircraft.

2. Enduring or permanent: a stable peace.

3.

a. Consistently dependable; steadfast of purpose.

b. Not subject to mental illness or irrationality: a stable personality.

Wed, 07/16/2014 - 12:06 | 4962848 brown_hornet
brown_hornet's picture

How can the FED back the dollar? I thought it was backed by the sweat and knowhow of the American worker.

Wed, 07/16/2014 - 12:07 | 4962851 SheepDog-One
SheepDog-One's picture

'It can't happen, because it hasn't happened yet.'
Great example of delusion.

Wed, 07/16/2014 - 12:08 | 4962856 p00k1e
p00k1e's picture

As soon as the dollar loses reserve, there go the pensions and Social Security programs.

How will we house all the broke, poor unhealthy people - death or tenements? 

Wed, 07/16/2014 - 13:32 | 4963347 headhunt
headhunt's picture

We go to Mexico

Wed, 07/16/2014 - 14:09 | 4963529 KidHorn
KidHorn's picture

How will we know when the dollar loses reserve status? It there some data point that will be triggered?

Wed, 07/16/2014 - 12:11 | 4962866 kurzdump
kurzdump's picture

I am sorry to say, but ANY attempt to destroy the economy of the USA (or its money) inevitably leads to a global collapse of everything. Slow demise is not an option. 'Gravity' of disorder will accelerate the demise to an amazing speed - no matter how hard you fight or repress it.

There has to be a GLOBAL solution, otherwise it will be Game Over sooner or later.

Wed, 07/16/2014 - 12:41 | 4963042 Vooter
Vooter's picture

Oh, well!

Wed, 07/16/2014 - 14:29 | 4963620 AnAnonymous
AnAnonymous's picture

I am sorry to say, but ANY attempt to destroy the economy of the USA (or its money) inevitably leads to a global collapse of everything.
______________________________________________

The US world order is a pyramidal order. The US sits at the top.

Pyramids never collapse from the top, they collapse from the bottom.

Removing the top changes nothing for the lower part.

Removing the bottom brings the upper part closer to the ground.

That is why 'americans' have been active in many countries that sit at the bottom of their pyramidal order and will increase their activity there.

Wed, 07/16/2014 - 14:40 | 4963672 kurzdump
kurzdump's picture

I agree, the "US world order is a pyramidal order", but the "world order" is not a pyramid. It's not built of bricks and stones.

Whichever part you remove, the order will collapse.

Wed, 07/16/2014 - 12:11 | 4962867 joego1
joego1's picture

In five years the headline will be;

"The dollar is still used in over 50% of all international transactions even though it has devalued by %50"

In eight years

"The dollar is still used in one third of all international transactions even though it has been devalued by %70".

In Ten years

"No one could have forseen the demise of the dollar"

Wed, 07/16/2014 - 12:19 | 4962904 Oliver Jones
Oliver Jones's picture

Never trust anything until it's officially denied.

Wed, 07/16/2014 - 13:23 | 4962908 socalbeach
socalbeach's picture

Even CNBC is more informative than these guys, the dollar's share is dropping.

This article: "More than 80 percent of trade finance was done in dollars in 2013..."

 

Yuan trade settlement to grow by 50% in 2014: Deutsche Bank

.......Oct,2013....Jan,2012

yuan.....8.7%..........1.9%

dollar..81.1%.......86.6% (96.4%-1.9%-7.9%)

euro......6.6%..........7.9%

.........=====

..........96.4%

 

CNBC: "The share of the yuan's usage in trade finance, such as Letters of Credit and Collections, grew to 8.7 percent in October, from 1.9 percent in January 2012, data from the transaction services organization showed. It now ranks behind the U.S. dollar, which remains the leading currency with a share of 81.1 percent. The euro's share, meanwhile, dropped to 6.6 percent in October, from 7.9 in January 2012, and is now in third place..."

Wed, 07/16/2014 - 12:29 | 4962912 Quinvarius
Quinvarius's picture

deleted.  wrong thread.

Wed, 07/16/2014 - 12:24 | 4962941 SillySalesmanQu...
SillySalesmanQuestion's picture

The only thing that Andrew Jackson wanted inscribed on his tombstone was " I killed the Bank."

Wed, 07/16/2014 - 12:26 | 4962944 Kirk2NCC1701
Kirk2NCC1701's picture

Fiat Currency = Fiat Debt = Fiat Enslavement via financial chains, rather than iron chains.

Fiat Currency  = Claim on OPA (Other People's Anything).  It's a Ponzi in its very DNA.

It truly is a shame that 99.99% of the population does not know this, and even many here on ZH get easily distracted by false arguments that are designed to deflect and redirect the real debate (from root-cause) to all sorts of false debates and Barnum & Bailey side shows.

Real Money = Indexed to non-fiat Assets.  Of which gold or silver are but two such real assets.  The minute the self-limiting creation of Money is removed (re-indexing to fiat currency), political leaders or their true sponsors (the money & power elite) are taken off that leash.  When that happens, "Satan" is unleashed on earth as "Mammon".  Figuratively speaking, since I don't believe in the classical "Satan" ("Adversary"). 

I digress, but you might be interested to know that space aliens (starship captains as gods, officers as archangels and crew as angels) have been visiting earth for tens of thousands of years: "10,000-year-old rock paintings depicting aliens and UFOs found in Chhattisgarh"

http://timesofindia.indiatimes.com/india/10000-year-old-rock-paintings-depicting-aliens-and-UFOs-found-in-Chhattisgarh/articleshow/38435091.cms

Some aliens/gods have been "shagging" the local population on a selective basis, just like shepherds shag sheep.  Occasionally, human-alien hybrids (demigods) or "saviors" are created, resulting in parents in "high places".  All these religious myths have a basis in reality, however distorted and morphed they become along the way (in its relayed story-telling) -- given the inherent flaws in traditional communication and institutional self-interest of its Story Peddlers.

 

Wed, 07/16/2014 - 12:38 | 4963025 headhunt
headhunt's picture

So the new fiat is alien script?

Can that be shorted?

Wed, 07/16/2014 - 12:49 | 4963094 bbq on whitehou...
bbq on whitehouse lawn's picture

That photo is just a picture of a campfire, The person on the left is sitting crosslegged rosting somthing on a faded fire. the person in the back standing doing the same meat on a stick over a fire.
The "object" that looks like a chair has a small prone person on it.
Sorry no spaceships or tricorders. Maybe there are other pictures but that one is just people around a campfire's'.

Getting back to Swift saying 90% of Swift transactions are in US dollars leaves out all those NON-Swift transactions. Which are becoming more numerous by the day. Soon all transactons will be US dollars on Swift because the rest of the world will have moved on.

Wed, 07/16/2014 - 13:46 | 4963422 RaceToTheBottom
RaceToTheBottom's picture

"Getting back to Swift saying 90% of Swift transactions are in US dollars leaves out all those NON-Swift transactions. Which are becoming more numerous by the day. "

NSA is seeing to that

Wed, 07/16/2014 - 14:19 | 4963575 Jackagain
Jackagain's picture

Beam him up Scotty... ;-)

Wed, 07/16/2014 - 12:34 | 4962976 Peon14
Peon14's picture

First of all it's not the U.S. Dollar it's the Federal Reserve Note and when it's worthless and creditors come around wanting the U.S. taypayers to make good on these worthless NOTES.  Then America just like Iceland did, should refuse to bail out the PRIVATELY held Federal Reserve Bank at public expense.  A line from Nancy Reagan comes to mind "JUST SAY NO".

Wed, 07/16/2014 - 12:35 | 4963008 headhunt
headhunt's picture

It is all a matter of long term trust.

Are you ready to put your trust in the Ruble or Yuan? That is to say would you rather have US dollars in your savings and your pocket or Rubles and/or Yuan?

Granted the US policies suck but I still like the Benjamin's and the whole "In God We Trust" thing.

Wed, 07/16/2014 - 12:53 | 4963118 Tigg47
Tigg47's picture

ingoldwetrust.ch

 

Wed, 07/16/2014 - 12:44 | 4963066 strannick
strannick's picture

First they ignore you, then they laugh at you, then they fight you, then you win. I guess we just moved from the ignore you stage, to the laugh at you stage.

Wed, 07/16/2014 - 12:56 | 4963135 Kirk2NCC1701
Kirk2NCC1701's picture

The Petrodollar must keep its market share, or be justly relegated from its lofty GRC status to a Regional Reserve Currency (RRC).  Tick tock.

When the BRICS and others start bypassing the USD, this becomes unavoidable.  When the BRICS start pricing (INDEXING) ALL ENERGY in non-USD currencies, the game will be up -- since Total Energy usage far exceeds the energy from petroleum alone.  Which is why the US Gov/Mil/Fed/MIC and FSA are determined to keep their wealth and lifestyle by keeping the Petrodollar by any and all means possible. 

And that explains why the US is now big on LNG also, and Shale:  Both are intended to front-run the coming Currency Reset, that could see a set of RRCs or currency indexed to Energy, rather than just Petroleum.  If the latter happens, Gold's/PM's play in currency backing may not be as large as envisioned by traditional "Gold/PM enthusiasts".  Although, if it were me, I'd base/index a currency on a "Basket of Precious Assets/Metals plus Energy".

p.s. For those who still don't grasp the subtle but important difference between Indexing and Backing, let me use this analogy to illustrate the necessary distinction:  The Petrodollar is Indexed to Petroleum, but Backed by People (usage by a populace and and Judicial and Military Force).  Likewise a currency can be indexed to Energy (kW or MW from all sources: electrical, carbon-fuels, nuclear, solar/wind/wave), and backed (used & defended) by the Faith that it will be used/honored by a Populace and its Government.

Wed, 07/16/2014 - 13:07 | 4963198 no more banksters
no more banksters's picture

No surprise:

"In 1971, Nixon ended the direct convertibility of the US dollar to gold, and as dollar became the global reserve currency, the absolute dominance of the banksters became definite."

http://failedevolution.blogspot.gr/2013/12/december-23-2013-banksters-ce...

Wed, 07/16/2014 - 13:11 | 4963219 TomGa
TomGa's picture

"It can't go down! Not with three barrels on it!"

Wed, 07/16/2014 - 13:45 | 4963381 headhunt
headhunt's picture

Gravity is a bitch and the sharks will use their weight in an attempt to change the outcome.

Just don't bite too hard.

Wed, 07/16/2014 - 13:13 | 4963226 gcjohns1971
gcjohns1971's picture

World Reserve Currency status belonging to a national currency is Tolkien's "One Ring of Power".   No one can use it without being corrupted.

Sauron represented the totalitarian state, which is what invented the concept and to which any who dare to try and control the One Ring must devolve.

 

The very concept is a corruption, for State privileged currency has always been the worst - particularly within its own borders, and currency not bound to human organizations the best.

If men were incorruptible there would be no need of government.  Being corruptible, governments and all they ordain should be viewed with unceasing suscpicion.

Wed, 07/16/2014 - 13:16 | 4963248 bitterwolf
bitterwolf's picture

 The articles thesis relates that no currrency lasts forever and the counter arguement that the USD is still numero uno, and  all other contenders are fighting only for 2nd place. This is a red herring because as all informed spectators of global currency/wars/debates/trade agreements grasp is that their is the desire and need for a global currency ( not SDR,that is a weak compromise) that all nations can subscribe to move global trade to the next level of growth and efficiency.The new unit ( lets call it a CREDIT, after all that is what it IS, after stripping it (money) of national culture and symbolism) would be traded electronically as an ever increasing and statistically relevant portion of global and first world trade is conducted.The global fed would use a FORM of technology akin to the popular and persistant BITCOIN. Nationans would and other ruling govenment entities would collect taxes and fees as usual.CASH(natioanal currency) could very well remain as it currently is....why force change no one wants?Just offer a superior product/service (like any competitor in the global market place already does.) and let the market vote with its feet.If the market and participants want to innoculate/bless the "value" with an additional metals backed deposit,so be it.

Any way you slice it. it IS coming, that is a lesson from Mans's history.Folks looking for FREEDOM in all its glory should grab a rifle and head to the arc of instability,as that is where the only true freedom lies,albeit temporarily, I suspect.

Cheers

Wed, 07/16/2014 - 13:29 | 4963324 headhunt
headhunt's picture

There still has to be a reckoning of value be it bitcoin or some other tulip bulb.

The fundamental challenge is exactly what Europe has going on now. Some countries Euros in reality are worth more and subsidize other countries Euro value.

Wed, 07/16/2014 - 19:14 | 4964868 MeelionDollerBogus
Wed, 07/16/2014 - 13:29 | 4963331 Bunga Bunga
Bunga Bunga's picture

Media whores just unable to understand scientific documents.

Wed, 07/16/2014 - 13:31 | 4963335 Herdee
Herdee's picture

The time will come when the BRICS and their allies demand a seperate gold backed U.S. Dollar for trading with half of the world's population.They don't want U.S. politicians in Washington because most of them are all scumbag hosers.Old political power hacks that are nothing but greaseballs like old alcoholic drunk John McCain and Kerry his bum buddy.Don't get me going on the students of Dickhead Cheney like Victoria PMS'd Nuland.They've given America a bad name.Same thing goes for corrupt World Bank and the IMF which are designed to serve big power brokers and keep the developing world enslaved by western powers.A new souce of finance and infrastructure has just arrived on the world scene.Clean up your act Washington and London.Clean up or be shut out.I love American people,it's the politicians in Washington that are destroying society and The Constitution.

Wed, 07/16/2014 - 13:43 | 4963409 headhunt
headhunt's picture

"They don't want U.S. politicians in Washington because most of them are all scumbag hosers."

Those hosers come in every flavor, culture, religion and country, the US does not have a monopoly on 'hosers'.

Suggest you stick with the hosers you can at least attempt to change.

Wed, 07/16/2014 - 14:32 | 4963636 Direct Democracy
Direct Democracy's picture

The only solution is for the US to adopt a direct democracy such as Switzerland.  Representative democracy does not work when all politians are corrupt and self-serving.  The citizens should be making the decisions regarding new laws, government spending and foreign entanglements by referendum/vote. 

Wed, 07/16/2014 - 14:48 | 4963718 Ruger556
Ruger556's picture

This would only work if all the people who were voting were working and providing value to the country.  Too many would suggest and then vote for higher taxes so they could take your hard earned money for themselves.  We are already passed that point.  If we ended all social welfare (not limited social safety nets) and put more limits on those said safety nets, and everyone got a job (not likely) then we could take steps as you say.  What would happen is the PR orgs would then be swimming in money as certain groups would attemp to get more votes.  Sounds like chaos to me.. and even more divisive.

Wed, 07/16/2014 - 17:40 | 4964505 potato
potato's picture

The only solution is to fire 98% of the feds. The states can take care of themselves. More local, more amenable to the voice of the people.

Wed, 07/16/2014 - 13:41 | 4963391 khakuda
khakuda's picture

And, home prices could NEVER go down.

Wed, 07/16/2014 - 14:30 | 4963627 ChargingHandle
ChargingHandle's picture

Correct me if I am wrong enlightened Z-Hedgers: Should the USD lose this hallowed status, the ripple effects in the states would be painful. The result of Trillions of unneeded dollars flooding back to the treasury would cause extreme inflation. Am I wrong with this assessment?

Wed, 07/16/2014 - 14:51 | 4963748 besnook
besnook's picture

it would be the mother of all stagflations. the good news is the economy would start making all the crap china makes for export to the usa. the bad news is the crap would be sold to wealthy asian nations while american labor is living in company dormitories to work 6 days/week for 30 dollars/day.

Wed, 07/16/2014 - 14:46 | 4963705 besnook
besnook's picture

"the american forces are being routed."- bagdad bob.

Wed, 07/16/2014 - 15:20 | 4963893 ncdirtdigger
ncdirtdigger's picture

Can those new 3-D printers do FRN's?

Wed, 07/16/2014 - 15:38 | 4963981 The Magus
The Magus's picture

If the dollar was going to lose its reserve status, it would have happened already.

The Brics can talk the talk....

Wed, 07/16/2014 - 17:08 | 4964353 barre-de-rire
barre-de-rire's picture

when you think alibaba is doin more annual business than ebay+paypal combined...but just for pacific & russia while ebay/PP are world wide....

i just laugh hard about futur balance of economical stenght on the planet.

 

US 1 USA are totally fucked within 10 years

Wed, 07/16/2014 - 17:41 | 4964510 potato
potato's picture

"There are always people who say the dollar is going to be replaced, but it hasn't happened,"

 

"There are always people who say the rain will stop sometime, but it hasn't happened," ergo, the logical conclusion is that it will NEVER STOP RAINING.

 


Wed, 07/16/2014 - 19:39 | 4964959 Livermore Legend
Livermore Legend's picture

Law of Physics .......Yes, it is Tick Tock.....

Your Right On Many Points......

But the Dollar is not going to Fail........

In fact, when that Tick Tock is Up it will be Oliver Twist on the Dollar:

"Thank You sir, May I have Another......."

Neither China or Russia is taking anything over, Much Less the Reserve Currency.......

The Euro is Worthless, backed by Nothing.....

And to the Rhetoric:

The US Dollar is backed by the Most Powerful and EXPERIENCED Military in the World......

As well Tax Receipts that exceed the entire Economies.......

Along with the "Bread Basket" of the world, still.....etc.... etc.....

We have Lots of Railroads and Lots of Coal......

Close Down China Inc., and we have Millions of New Jobs.....

They got Millions Unemployed.....

Please do cut us off........

Trillions in Claims are going to Fail.... here in the Rest of the World.....but

The Primary Non Sequitur that this = USA Collapse, is just that:  A Non Sequitur.......

http://www.talentseekscapital.com/uploads/3/2/6/9/3269986/america.pdf

 

 

 

 

 

 

 

 

 

 

 

Wed, 07/16/2014 - 19:49 | 4964990 Livermore Legend
Livermore Legend's picture

GDP is Meaningless....

It is Per Capita:

In Order for China just to Equal our Productivity, they would have to appxte the Entire World Economy today, ALL BY THEMESLVES......

Thus they are Not Even Close to the USA here in 2014, and only someone Delusional and ignorging The Laws of Physics and Thermodynamics could believe that in any scenario China can grow to Equal the World Economy today....

You see how this simple Fact and Logic kills the whole "USA Collapse" scenario ?

Nuff Said.....

 

 

 

 

 

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