De-Dollarization

We have talked quite a bit about the world's increasing impatience with the U.S. dollar. As you know, it has been the reserve currency of the world ever since post WWII. The good ol' US Greenback! Things are going to change....and you can take that to the bank.

A few weeks ago, Brazil, Russia, China and India (BRIC) all had a meeting. What do they have in common??....they own a TON of U.S. paper-debt. And they have grown weary of given us hard goods and labor in exchange for I.O.U.'s. So who will give us the money? And what happens to a society that has lived an "unsustainable" lifestyle for three decades? Again, I don't think we want to know, because it won't be fun.

Even without capital controls, the nations meeting at Yekaterinburg are taking steps to avoid being the unwilling recipients of yet more dollars. Seeing that US global hegemony cannot continue without spending power that they themselves supply, governments are attempting to hasten what Chalmers Johnson has called “the sorrows of empire” in his book by that name – the bankruptcy of the US financial-military world order. If China, Russia and their non-aligned allies have their way, the United States will no longer live off the savings of others (in the form of its own recycled dollars) nor have the money for unlimited military expenditures and adventures.

The article ends with a very sobering sentence;

US officials wanted to attend the Yekaterinburg meeting as observers. They were told No. It is a word that Americans will hear much more in the future.

Read full article here....it is a VERY good read and the guy writing it is certainly no dummy; http://www.michael-hudson.com/articles/globalism/090614De-DollarizationDismantlingEmpire.html

Hat tip to Gary A. for the article.