Will the Dollar lose it's status as the World's Reserve Currency?

Have you wondered why every day we hear about a new European country that is defaulting and the U.S. who owes more debt than any other country in the entire world has not defaulted? The reason is that we have the dollar and the dollar is the world's reserve currency, when we get into debt all we have to do is turn on the printing press. That's the benefit of having the world's reserve currency. Germany doesn't have that perk, neither does Italy or Portugal or any other country.


Up until 1990 we were the largest creditor nation, today that has been completely undone and reversed. Today we are the MOST indebted country in the ENTIRE WORLD.


Other countries like China and Russia as well as the IMF, the U.N. and the World Bank are starting to call for the end of the dollars reign. And now that we have lost our triple A rating it's inevitable. Not only do we consume too much but we produce too little. When is the last time you looked and saw "Made in the U.S.A. embossed on anything? In order to repay the national debt America must work and America must make things! There is no way that we can repay the national debt. As of this writing according to the national debt clock the national debt is over 17 trillion dollars, if you include interest it's over 55 trillion dollars. The estimated population of the United States is 310,332,468 so each citizen's share of this debt is just under $175,000! The National Debt has continued to increase an average of $4.09 billion per day since September 28, 2007! Just let that sink into your brain for a few minutes...We can't even pay the interest on this kind of debt!


If oil is no longer priced in dollars the price of oil will literally skyrocket for Americans which will affect almost every area of American life as well as the rest of the world. Everything that we consume will become more expensive, food, clothes, cars, gas, medicine...everything will skyrocket overnight! Think about it, we cannot pay for the social welfare state that we have now, we have to borrow now to fund Social Security, Medicare, Welfare. States are on the verge of bankruptcy now...what will happen when this happens?



Interest rates will go up, stock prices will plummet and it will be very difficult to get a loan. Not only will this affect America but it will affect the entire world. Countries that depend on America to buy their goods, secure their country and keep the world in a semi-peaceful state will be greatly affected. Other countries that are kept in check by America may take advantage of the melee.


I really hate to be the bearer of all this doom and gloom but if you know what is good for you you will start to prepare for this inevitable state. Start buying and storing food, plant as large a garden as you can, if you have to buy a large purchase...buy it now! Buy silver and gold (it's always been a hedge against inflation and goes up in times of upheaval). During the Wiemar Republic when it took a wheelbarrow full of paper money to buy a loaf a bread, it only took a handful of gold coins to buy an entire row of townhouses!


I hope that by some miracle this doesn't occur, I hope that I am miscalculating or some great invention like the internet forestalls this catastrophe. However, isn't it better to prepare for the worst and hope for the best? Most people will not know what hit them when this happens because the vichy media is not warning people, most people will be broadsided and good. I hope that you are not one of them.


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The National Debt is OVER 14 Trillion Dollars!

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Comments 39 comments

Mr. Happy profile image

Mr. Happy 5 years ago from Toronto, Canada

I find that number of the national debt: $14,267,106,987,596.28, hilarious (I lost track after about the tenth digit roffl). The more ridiculous it gets the easier it will be to simply dismiss it as fictitious. Bankers screwed people why not screw them back: default all the way! Stop paying debts which have outrageous interest claims attached to them, it's that easy.

Good blog. Cheers!


SEO Ibiza profile image

SEO Ibiza 5 years ago

Hi Brie.

Cool hub. In my mind there's not a shadow of doubt about "if" it's only when. My favourite paragraph summarising the situation is this one:

"One stark and sobering way to frame the crisis is this:

if the United States government were to nationalize (in other words, steal) every penny of private wealth accumulated by America’s citizens since the nation’s founding 235 years ago, the government would remain totally bankrupt.

According to the Federal Reserve’s most recent report on wealth, America’s private net worth was $53.4 trillion as of September, 2009.

But at the same time, America’s debt and unfunded liabilities totaled at least $120,000,000,000,000.00 ($120 trillion), or 225% of the citizens’ net worth. Even if the government expropriated every dollar of private wealth in the nation, it would still have a deficit of $66,600,000,000,000.00 ($66.6 trillion), equal to $214,286.00 for every man, woman and child in America and roughly 500% of GDP.

If the government does not directly seize the nation’s private wealth, then it will require $389,610 from each and every citizen to balance the country’s books."

from here http://buygoldsilver.org/2010/01/gold-2010-beyond/


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I agree wholeheartedly Mr. Happy! Thanks for commenting..you too SEO


Sophia Angelique 5 years ago

I also wrote a hub on this. Seriously? I don't think it's a matter of if America retains the reserve currency. I think it's when America loses it.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

me too...sadly


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX

Brie - If China has its way, and they have most of the cards in the deck at present, the dollar will lose it's status. Our astronomical national debt increases that likelihood since it results in the further devaluation of the dollar. The federal government and Federal Reserve are bringing most of our problems upon the issue by their use of faulty economic policies.

The Chinese are just sitting back, watching and waiting.

The Frog


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I think the Chinese are doing more than sitting back watching and waiting but other than that I agree.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX

Brie = That was figuratively speaking. What they are doing is manipulating their currency on the world markets.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

And buying up the metals market.


Business Info profile image

Business Info 5 years ago from The Interwebz

"And buying up the metals market"

Oh yes, the "China put" has been in place on Gold since $1000 per Oz, I think they would buy unlimited Gold at that price, and hence I think it highly unlikely we'll ever see that price again.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I'm glad I got some at $800!


Sophia Angelique 5 years ago

@FrogPrince. China has been getting rid of dollars because she thinks the dollar is going to crash. She is buying up gold in order to protect herself. Who isn't? It's not only China that wants America to lose the Reserve currency. It's Europe as well.


Business Info profile image

Business Info 5 years ago from The Interwebz

"It's not only China that wants America to lose the Reserve currency. It's Europe as well."

+ Russia, India, Brazil, & MENA.

lets face it, it's a great responsibility and the US have proven they can't be trusted with it, they chose to abuse it for their own gain rather than act responsibly with it for the common good.

it's only right that the price for this is forfeiture IMO


aguasilver profile image

aguasilver 5 years ago from Malaga, Spain

God said, if you can be trusted with little, much will be given to you, and also that he who is entrusted with much has a greater responsibility.

God entrusted the USA with the world currency, and they threw Him out of the classrooms, now nobody gets taught about God, so why should God uplift your once great nation any longer?

God stripped Great Britain from controlling 36% of the globe; with Sterling as the world currency; in a few short years, once the UK forsook Him in favor of socialism and self interest.

I fear your nation is heading for the same wake up call.


Barbara Kay profile image

Barbara Kay 5 years ago from USA

We still have our money in the bank, but maybe we better think about buying up metal. I don't think most people are taking all of this seriously and need to plant their own gardens and to stock-up on necessities. I'm not seeing any interest except for older people.


Business Info profile image

Business Info 5 years ago from The Interwebz

@ Barbara Kay

I think that's a very good idea. & yes you are so right, nobody wants to hear it, but its coming anyway and is going to blindside the vast majority of people who will get wiped out one way or the other.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Well, that's why I am writing these articles...to warn people who will listen.


Business Info profile image

Business Info 5 years ago from The Interwebz

the problem is that if friends, family and people we trust wont listen, how many people are going to truly take note of something they find on the internet?


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I'm hoping some will..sometimes friends and family know us too well so that they can't receive it.


HOOWANTSTONO profile image

HOOWANTSTONO 5 years ago

I saw an article that the New World Reserve currency is called "Bancor" and started in 1940s or even before.

http://en.wikipedia.org/wiki/Bancor

or

http://theeconomiccollapseblog.com/archives/bancor...


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Interesting.


manthy profile image

manthy 5 years ago from Alabama,USA

I think that the dollar is on its way out, myself I am buying up silver & gold.

Thanks for the info


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

You're very smart to do so.


J.S.Matthew profile image

J.S.Matthew 5 years ago from Massachusetts, USA

All I can say is that this is ridiculous and scary to say the least! The next generation of Americans is in for a rude awakening! The wealthy 1% has done it again! This may be the last time for them!

JSMatthew~


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

It really is scary. Thanks for commenting J.S.


Genna East profile image

Genna East 5 years ago from Massachusetts, USA

Excellent hub, Brie. What I find especially disconcerting are the number of people in the US who don’t how much money we owe to other countries…especially, of course, China. Up and useful.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks Genna.


LRCBlogger profile image

LRCBlogger 5 years ago

The one thing supporting the dollar is that most of the world's nations own a piece. In other words, it is in their best interest to keep the dollar strong. That will help us probably more than anything. Great Britain, China, Japan, etc all own a massive amount of our debt. If the dollar loses massive value, they will lose a ton of money on their investment.

Informative hub!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

They are dumping the dollar fast. Thanks for commenting.


thehemu profile image

thehemu 5 years ago from New Delhi, India

May be yes, with rising trend in the asian economies. dollar might lose its status.


LRCBlogger profile image

LRCBlogger 5 years ago

actually Brie, I looked further into this and one of the biggest buyers of the US debt is now...The US!?!?!

We are printing money to buy our own debt because other countries are scaling back. Not good.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

That's right..it's a house of cards ready to collapse at any moment! Get ready!


Harlan Colt profile image

Harlan Colt 5 years ago from the Rocky Mountains

I agree with Mr. Happy, just stop paying the greedy thieves. Another great hub.

- Harlan


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks Harlan


Ramsa1 profile image

Ramsa1 5 years ago from A citizen of the World

America squandered its wealth on the military and in wars. How much did the Iraq war cost?

Americans pay no attention to the serious issues facing their country. The masses are more interested in reality shows, professional sports, and other such nonsense. This is good news for the politicians as it makes it easier for them to bamboozle the people.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Yes, I know...


dwolfe profile image

dwolfe 5 years ago from New Jersey

I have told people about Silver since 2008 I have been ridculed by some. The average American still does not understand. I enjoyed reading this post.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Yes, me too and the ones who took my advice are very happy, the ones who didn't deserve what they get...nothing!

Thanks for commenting.


Paulo 5 years ago

aguasilver: "God entrusted the USA with the world currency"

LOL wut?

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