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downtoearth.org: US dollar’s grip on global markets might be over, warns Goldman

avatar of @briggsy
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For years it felt like we were beating a dead horse, warning that the US dollar was reaching the end of it's reign as the dominant world reserve currency, just like many currencies before it.

The following image assumes the US Dollar will last until 2030 before completely losing it's status, but Goldman Sachs is sounding the alarm early.


https://www.downtoearth.org.in/news/economy/us-dollar-s-grip-on-global-markets-might-be-over-warns-goldman-72588

Goldman Sachs has issued a bold warning 28 July, 2020, that the dollar is in danger of losing its status as the world’s reserve currency. Goldman Sachs Group Inc has put a spotlight on the suddenly growing concern over inflation in the United States.

The wording here implies that the future is still uncertain about the status of the US Dollar, but unless the Federal Reserve has access to a time machine, the future seems fairly certain to me.

If you're headed towards a particular outcome and you don't alter the course, then you're going to have that outcome. I don't see how anyone can adjust the course the US is currently on. Everything is in a fine balance. The very act of trying to adjust course will end in disaster sooner. It's the choice of derailing the train now or flying off the cliff later.

The current global response to the pandemic has been to derail the train, and we're currently in the middle of that derailment. Gold and Silver are no longer barbarous relics of the past, and fairly soon we may see robinhood lemmings piling into worthless precious metal ETFs. I can still remember the cries in 2008-2009 when funds went broke and people lost their paper gold and silver. If you don't hold the real thing, you don't have the real thing. But don't tell the lemmings that.

To my knowledge, the Euro was created to be the next reserve currency, but I imagine Russia/Asia have other plans. Why do you think its the G7 and not the G8? It's not just Russia's actions in Europe that the news reports on that make them the black sheep, I'm certain it goes much deeper. Europe is ripe for the picking if Russia and China felt like it, especially since the US is bankrupt (for all intents and purposes).

These things don't happen overnight, they escalate over decades.

Cryptocurrencies are slowly taking over many areas of finance and business. Piece by piece, little by little.

China and Russia are elbowing the US out of Africa and the Middle east.

The US Military is abandoning bases and creating power vacuums.

The new Right in the US are anti-Semitic in their rhetoric, and seclusionist in their ideals. The new Left are enamored by China and socialism and authoritarian equality. Like Rome, the Current Empire is rotting from within while the new Empire is slowing filling in vacuums that are being left behind.


The takeaway from this is to make sure you're not saddled with debt. Everyone else is doing it, taking on debt and digging deeper into a hole because of shortsightedness. You don't want to be in that hole when it comes time to pay the piper.

Be safe. Thanks for dropping by.