An increasing number of financial experts are saying the United States dollar is no longer a reliable and dependable currency – and that its downfall is inevitable. There are even some experts who think the dollar is so unstable that the Chinese Yuan will soon become the world’s reserve currency, or currency of choice.
“Our addictions to debt and cheap money have finally caused our major international creditors to call for an end to dollar hegemony and to push for a ‘de-Americanized’ world,” investment advisor and financial strategist Micheal Pento wrote in an op-ed piece for CNBC.
“In my view the dollar is about to become dethroned as the world’s defacto currency basically,” Canadian billionaire investor Ned Goodman said. “We’re headed to a period of stagflation, maybe serious inflation, and the United States will be losing the privilege of being able to print at its will the global reserve currency.”
Goodman believes the US already is in another recession. The unemployment numbers are understated and the “real” unemployment number likely is closer to 15 percent, he said.
Over half of 200 international institutional investors surveyed by the Economist think that the Yuan will eventually replace the dollar as the world’s reserve currency. The reserve currency is the money most commonly accepted for international trade.
Why Reserve Currencies Matter
Having money with a reserve currency status enables a nation to dominate and control the world’s financial markets, as their currency is used for international trade and transactions. The US has the ability to maintain a $17 trillion national debt largely because the dollar is the reserve currency.
A nation with a reserve currency can simply print money to pay its debts.
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