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In my opinion, the US dollar still remains - Page 2 - Politics, Business, Civil, History - Posted: 31st Jan, 2009 - 2:40pm
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Which is it? US, Pounds, Euro?Post Date: 31st Mar, 2005 - 10:44pm / Post ID: #
The Most Powerful Money - Page 2
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| It is still the standard by which all others is measured. It is still the one preferred over all others. I am not exactly sure why this is, but for the moment it is true. |
I don't expect the U.S. dollar to survive too much longer as the reserve currency. Asian central banks have already started to diversify and reduce the ratio of U.S. dollars in their holdings. I'll give the U.S. dollar 15 years at most.
| Message Edited! Mr. Smith: Do not place nonsense rants in your messages. |
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A little note on how fragile our U.S. economy can be, and who holds the balance:
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| Paul Craig Roberts, writing for The American Conservative, said in July of 2005 that "As a result of many years of persistent trade surpluses with the United States, the Japanese government holds dollar reserves of approximately $1 trillion. China's accumulation of dollars is approximately $600 billion. South Korea holds about $200 billion. These sums give these countries enormous leverage over the United States. By dumping some portion of their reserves, these countries could put the dollar under intense pressure and send U.S. interest rates skyrocketing. Washington would really have to anger Japan and Korea to provoke such action, but in a showdown with China - over Taiwan, for example - China holds the cards. China and Japan, and the world at large, have more dollar reserves than they require. They would have no problem teaching a hegemonic superpower a lesson if the need arose." "The hardest blow on Americans," concluded Roberts, "will fall when China does revalue its currency. When China's currency ceases to be undervalued, American shoppers in Wal-Mart, where 70 percent of the goods on the shelves are made in China, will think they are in Neiman Marcus. Price increases will cause a dramatic reduction in American real incomes. If this coincides with rising interest rates and a setback in the housing market, American consumers will experience the hardest times since the Great Depression." |
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Yes, the US dollar is without doubt the most widely traded currency in the forex market, accounting for about 68% of all currency trades. If I remember correctly, Euro and Yen come next, with British Pound at the fourth place.
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The greenback might be the most traded but it's not the most powerful. The euro looks like its unstoppable because its growing. Brtitish money is like 2:1 on us as well.
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Post Date: 17th Dec, 2008 - 5:11pm / Post ID: #
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Name: LUKE
Comments: I don't know much about currency, but I heard that china owns enough dollars to make its value fluctuate. Am I right ?
Euro Rocks
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I can't verify that but having paper money is not the only indication, you also have to consider assets and gold. I would invest in gold and euros.
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Post Date: 21st Jan, 2009 - 11:51pm / Post ID: #
NOTE: News [?]
The Powerful Money - Page 2
Jim Rogers: 'Sell any sterling you might have. It's finished'
Investment guru issues grim warning as sharp fall in inflation hits pound
By Sean O'Grady, Economics Editor
Fresh concerns about the British economy and fears for the stability of the UK's financial system pushed sterling to new record lows against the dollar, euro and yen yesterday.
Ref. Source 4
Post Date: 31st Jan, 2009 - 2:40pm / Post ID: #
The Powerful Money Politics Business Civil & History - Page 2
In my opinion, the US dollar still remains as the most powerful money in the world today. Despite its being mainly fiat, the US economy being the biggest single economy in the world will still remain as possessing the most powerful currency. Notwithstanding the fact that the US as vanguard of the world's democracy and being the most equipped in military strength, the US dollar will remain as the most powerful currency and the global medium of exchange. The euro of the United Europe appears to be the next powerful currency but I think, it can only overtake the US dollar should Europe wage a new world war.
Interestingly though, the US dollar can be possibly outbalanced NOT by the combined economies of China and Japan (which reportedly have $1.6Trillion in dollar reserves) but by a united entity of Middle Eastern countries being the largest oil and petroleum-producing economies. Though quite a misnomer, but so many have long considered OIL as the Black Gold. Hence, it can be said that for as long as most world economies remain dependent from the oil-producing Arab countries, a "United Dinar" for instance, may yet emerge as a powerful currency that may eventually replace the US dollar. Certainly, the US will not allow such a thing to happen and perhaps, this would explain why the US foreign policies and incidentally its military forces will forever meddle and control that part of the globe.
Further, Southeast Asian countries including Japan could soon have on their conference table the prospect of coming out with its own Asian currency as akin to the Euro. I recall having read a news article early last year that ASEAN countries (comprised of Singapore, Thailand, Indonesia, Malaysia, Philippines, among others) have broached such plan with Japan; so, it might just be a matter of time when Asia, especially when China tags along, unite and circulate its own Asian Dollar and debase the value of the US dollar. This may become the most powerful currency by then; it may or may not be backed up with any precious metals, but will be powerful due to its sheer strength being the biggest united economy and simply for being the medium of exchange in the biggest and most populous continental empire with protectionist consumers and producers. Asia could become so independent it can eventually afford to reduce and worse, cease economic trade with the Americans and Europeans, and say goodbye to the US Dollar for that matter.
There, just my thoughts!
JB: There, I just broke the routine! 
Edited: mcborne on 31st Jan, 2009 - 2:50pm
TOPIC: The Most Powerful Money