Dollar's Reserve Currency Status is Now in Trouble

 The United States has had an incredible advantage these past 75 years.  Ever since winning WWII we've had the world's ONLY reserve currency.  In simple terms this means that ONLY the US Dollar is REAL MONEY and every other currency is pegged to the US Dollar.  How could this be?  Because we had all the gold in Ft Knox following WWII and we also had 75% of the manufacturing capabilities because all of Europe was destroyed.  "He with the gold makes the rules!"

So we own the printing press to the world's only reserve currency.  We can create AS MUCH AS WE WANT.

But what happens when the rest of the world gets sick of this system?  What happens if USA couldn't pass a budget that was $1 trillion more than what we take in?  What would happen if we could no longer raise our debt ceiling with the wave of Congress' hand because the only money that the world would accept as payment was NOT the US Dollar?

In other words, what would happen if the USA had to live within it's means and could only pay for things if they had collected the taxes to pay for them?  There would be NO TALK about free college.  No talk about free health care.  No talk about reparation payments to Foundational Blacks.  No talk about Universal Basic Income.  No talk about expanding Medicare.  And maybe no talk about giving billions to foreign nations and spending hundreds of billions on protecting the world with our military bases scattered all over the globe.  In short, it would be the end of the USA as we know it.

For decades, the U.S. dollar was the undisputed king of global currencies, but now dramatic changes are happening.  China, Russia, India, Brazil, Saudi Arabia and other nations are making really big moves which will enable them to become much less dependent on the U.S. dollar in the years ahead.  

This is really bad news for us, because having the primary reserve currency of the world has enabled us to enjoy a massively inflated standard of living.  Once we lose that status, our lifestyles will be much different than they are today.  

Unfortunately, most Americans don't understand any of this.  Even though our leaders have treated the stability of our currency with utter contempt in recent years, most Americans just assume that the dollar will always reign supreme.  

Meanwhile, much of the planet is preparing for a future in which the U.S. dollar will be far less important than it is right now.  The following are 7 signs that global de-dollarization has just shifted into overdrive...

#1 The BRICS nations account for over 40 percent of the total global population and close to one-fourth of global GDP.  So the fact that they are working to develop a "new currency" should greatly concern all of us...

The Deputy Chairman of Russia's State Duma, Alexander Babakov, said on 30 March that the BRICS bloc of emerging economies - Brazil, Russia, India, China, and South Africa - is working on developing a "new currency" that will be presented at the organization's upcoming summit in Durban.

"The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future. I think that at the BRICS [leaders' summit], the readiness to realize this project will be announced, such works are underway," Babakov said on the sidelines of the Russian-Indian Strategic Partnership for Development and Growth Business Forum.

Babakov also stated that a single currency could likely emerge within BRICS, and this would be pegged not just to the value of gold but also to "other groups of products, rare-earth elements, or soil."

#2 Two of the BRICS nations, China and Brazil, have just "reached a deal to trade in their own currencies"...

The Chinese renminbi is speeding up in expanding its global use, a trend that will help build a more resilient international monetary system, one that is less dependent on the US dollar and more conducive to trade growth, experts said on Thursday.

They commented after China and Brazil -- two major emerging economies and BRICS members -- reportedly reached a deal to trade in their own currencies, ditching the US dollar as an intermediary.

The deal will enable China and Brazil to conduct their massive trade and financial transactions directly, exchanging the RMB for reais and vice versa, instead of going through the dollar, Agence France-Presse reported on Wednesday, citing the Brazilian government.

#3 During a meeting last week in Indonesia, finance ministers from the ASEAN nations discussed ways "to reduce dependence on the US Dollar, Euro, Yen, and British Pound"...

An official meeting of all ASEAN Finance Ministers and Central Bank Governors kicked off on Tuesday (March 28) in Indonesia. Top of the agenda are discussions to reduce dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies.

The meeting discussed efforts to reduce dependence on major currencies through the Local Currency Transaction (LCT) scheme. This is an extension of the previous Local Currency Settlement (LCS) scheme that has already begun to be implemented between ASEAN members.

#4 In a move that has enormous implications for the "petrodollar", Saudi Arabia just agreed to become a "dialogue partner in the Shanghai Cooperation Organization"...

The state-owned Saudi Press Agency said that, in a session presided by King Salman bin Abdulaziz, the Saudi cabinet on Tuesday approved a memorandum awarding Riyadh the status of dialogue partner in the Shanghai Cooperation Organization -- a political, security and trade alliance that lists China, Russia, India, Pakistan and four other central Asian nations as full members.

The organization further tallies four observer states -- including Iran -- and nine dialogue partners, counting in Saudi Arabia, Qatar and Turkey. It is headquartered in Beijing and served by China's Zhang Ming as secretary-general.

Here;  The Dollar Is In Trouble! BRICS Nations Developing New Reserve Currency (prophecynewswatch.com)

"Dennis,  I still don't get it!"

Think of it like this:  A woman comes into my office and I say, "How's it going?"

"Great!", she says, "I have a new Mercedes, a new beach home in FL, a new yacht parked in a slip behind my house, a new motorhome that I use to drive between MN in the summer and FL in the winter!  Plus I quit working just last year!"

"Wow!", I reply, "Let's look at your checkbook, your banking statements, your investment statements, your future income statements from Social Security and any pensions you have, along with all other sources of income and inheritance you have coming."

"Yeah, I didn't bring any of those things because except for Social Security of $2000 per month I don't have any money at all."

"What?  How is that possible?  How could you have bought all those things?"

"Oh, they let me finance them all by just signing a paper saying I would make the future payments.  They assured me that they had complete FAITH AND CONFIDENCE in me based on the fact that I told them I was extremely faithful and trustworthy."

At some point in time, this lady is going to have a day of reckoning when all her creditors realize she doesn't have enough money to pay her promises.  When that day comes she will no longer be able to get credit or borrow money to buy anything.  And life will be much, much different for her for evermore.  The houses, yacht and cars will be taken back by the creditors and she will be living in a tiny apartment eating Raman noodles hoping that her Social Security will go up enough to keep up with the rising cost of rent and Raman.

Pride comes before the fall.