“The U.S. dollar will lose its reserve currency status sometime between 2014 and 2020."
Lkorrow: The day that this occurs, I will consider my prediction for a U.S. Economic collapse to have been proven right. The consequences here of a loss of reserve currency status for the dollar will be devastating - and many of them will come BEFORE the actual announcement as the rest of the world begins jockeying for position.
When it happens, hopefully, I'll be running a small farm, and mostly be 'off the grid.' 2014, though, isn't very far away.
June 22, 2011
If the Dollar Goes, What Happens to Your Portfolio?
by Jeff Clark
BIG GOLD
Have you considered what will happen to your portfolio – and all the other areas of your life – if the dollar fails? The ramifications will be widespread, painful, and inescapable if you’re not properly diversified.
Last month, I attended the Global Currency Expo sponsored by EverBank. The overarching theme, as you might expect, was that diversification out of one's home currency is paramount. While there were plenty of traders on hand, it was the big-picture talks that had the most pressing messages.
I came away feeling that I needed to reexamine my exposure to the dollar. Have you considered what will happen to your portfolio – and all the other areas of your life – if the dollar fails? The ramifications will be widespread, painful, and inescapable if you’re not properly diversified.
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But the most thorough and convincing presentation by far came from Chuck Butler, president of EverBank World Markets and a 35-year currency analyst. If anyone knows currencies, it’s him. It's been said that he’s advanced awareness of the currency markets more than almost any other banker working today.
Chuck outlined the case against the U.S. dollar with damaging conviction. He pointed out that the pound sterling was the world’s reserve currency until WWII, and “we became the reserve currency by financing England because they couldn’t pay their debts and had diluted their currency… They needed assistance from other countries to service their debt and had overextended their military.” Sound familiar?
He noted that China, with little fanfare, started signing swap agreements in 2009. To date, they’ve signed agreements with much of Asia, the European Union, Canada, Russia, Brazil, Belarus, Argentina, and will soon with Japan and Korea. There are even rumors of them working on currency swaps with the Arab nations. He reminded us that China’s president recently stated publicly that the U.S. dollar is a “product of the past.”
The scary ramifications of this were couched in a stark warning: “The U.S. dollar will lose its reserve currency status sometime between 2014 and 2020. There will be no trumpet; it will just happen.”
Full article: http://lewrockwell.com/orig11/clark-j27.1.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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