The dollar was a median step towards a newer and more corrupt ideal. Its time is nearly over. This is open, it is admitted, and it is being activated as you read this. The speed at which this disaster occurs is really dependent on the speed at which our government along with our central bank decides to expedite doubt. Doubt in a currency is a furious omen, costing not just investors, but an entire society. America is at the very edge of such a moment. The naysayers can scratch and bark all they like, but the financial life of a country serves no person's emphatic hope. It burns like a fire. Left unwatched and unchecked, it grows uncontrollable and wild, until finally, there is nothing left to fuel its hunger, and it finally chokes in a haze of confusion and dread Full story............. http://www.alt-market.com/articles/784-how-the-us-dollar-will-be-replaced Comments?
Another angle is that the whole QE 1 and 2 was a way for America to dilute its currency and make their export more competitive. It also was used to kick the can so that USA did not default in 2008. This somewhat worked, as USA export did rise and they avoided a messy default in 2008. They are not out of the dark yet though. With everyone running back to USD, I wonder if they will eventually trigger QE3 under pretence of economic revitalization again. We are in the middle of currency war here between USA, Germany and China.
How can SDR's provide stability and prevent the occurrence of further global financial meltdowns? They can't. Eventually too they will become unstable just as fiat currency has.
Up until 1971 the USD really did have something to be proud of having. Not just reserve currency status but reserve currency status that was backed by the largest gold reserve in the world. It's what made other nations so happy to take up US debt. Then the thief Nixon fraudulently defaulted on the rest of the world. IMO if the cold war had not been so adept at keeping the entire world scared to death of a commy bomb and the need to have America ever so strong, the rest of the world would have crushed the USD almost over night.... They would never have hit 14 Trillion in debt in the first place.
