BRIC leaders are meeting today to discuss how they are going to exit their ginormous holdings of US dollars.
Of course you won't read that in the article (or any "official" article) or see that in any press release, but that is what is happening.
Think about it. Let's say you own a couple of Trillion of widgets. And you see the manufacturer of widgets say, "Hey world. I need to increase production of widgets by 50% for the foreseeable future" What do you think will happen to the value of your widgets?
That is what is going on right now. The widgets only have value because everyone *believes* they have value. As that belief gets shattered that value will go down. Of course having 10,000 Nukes is a pretty convincing argument to make sure that people keep valuing your widgets as you want them valued, but it is an argument that only works in theory.
Right now, all US dollar holders are talking up the dollar. They have to. They are talking their book. But soon (soon being before 2020) the US dollar will be completely replaced as *THE* reserve currency.
It will still have a role in the world, but it will no longer be the dominant currency that it has been since WWII.
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