This is a huge story and it's reported, of course, in a British newspaper rather than a U.S. daily. The dollar has been the standard world currency since the end of WW II. It has been relatively stable and the medium of international trade. Because we have trashed our economy the dollar has also become more like the peso, losing much of its stability and value. As a consequence, the big trading nations, particularly China and the Gulf States, are moving away from the dollar to a new international trade currency.
So what? Well, how does economic warfare sound to you? When the dollar was the world standard other countries were reluctant to engage in such activities against the U.S. because to do so would imperil the value of their own holdings which were in dollars. If a new currency becomes the standard, then let's say China or Venezuela, if they were so inclined (and they are), could much more easily make a run against the dollar and cripple our economy. The dollar will become much more like the Mexican peso or other second tier states with much more volatility. Your savings could lose half their value in a week or two. What a nice thought! All your hard work wiped out because Hugo Chavez hates gringos and decides to act out.
Be sure to thank our wonderful politicians for bringing us to this new and not improved state of affairs. What's even scarier is that a majority of them think that we haven't deficit spent nearly enough and have all kinds of plans to spend even more. It will be interesting living in the United Banana Republic.
www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
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