I forward financial views without comment . Sometimes I get opposing views. I share that too.

From: doug

Subject: Re: The U.S.A. will remain the World's Reserve Currency

Thanks for the article. Generally it is a good summation and mostly accurate. When he says the US dollar is strong because the US economy is strong there are issues that should be understood.

The market is being strongly manipulated by the Fed and several Central Banks. As an example the US unemployment rate is toted as approx. 5%. In fact it is closer to 23%. They only publish one years unemployment numbers. Any workers who are unable to find work in the last 2-3-4+ years are not reported. The Dow Jones 30 (DJ) and S&P is also manipulated.

The DJ was over 18,000 for the last couple of years. This made the markets believe that US business was doing great. In fact much of the the $85 billion that was being printed EVERY MONTH (Quantitative Easing 1-2-and 3) was given to the banks. Much of that went to recapitalize them and cover their HUGE derivative positions. Much was also lent, at minimal interest rate, to the largest corporations (DJ 30 and S&P) who bought back as much of their own stock as possible.

This inflated the markets which made them appear to be strong. Lots of money was lent to people to buy homes and cars and when the interest rates eventually start to climb these people will have serious debt issues. Not to mention not being able to find work.

In a nut shell the US (Japan and EU ) have buried themselves in so much debt that it is impossible for them to ever pay it off and balance their books. Eventually (1-3 years) there will have to be a world economic / currency reset to allow nations out from under this debt burden.

The SDR (Special Drawing Rights) is in the process of being set up to do this. In the meantime the US appears to be the strongest of the severely weakened nations. The reserve currency status was solidified in 1972 (?) when Saudi Arabia agreed with the the US to price all their oil in US dollars only. The Saudis brought the OPEC nations on board and the PetroDollar was born.

This worked great for the US until approx. 2010. Since then dozens of countries are now buying and selling oil and gas in their own currencies. The huge volume of oil and gas between China and Russia are all settled in their own currencies. The same applies with Russia and countries of the EU. Even the Saudis have turned to China as their largest customer, now that the US is more energy self sufficient.

OPEC has followed suit. FYI – the severe drop in oil prices was done to drive the new, highly leveraged, fracking companies worldwide into bankruptcy. This will get this portion of the world market back under OPEC and Russian control. Even Canada has made arrangements with China to carry Yuen in the Bank of Canada for international settlements.

The BRICS nations (Brazil, Russia, India, China and South Africa) has set up their own Bank of International Settlements so they can trade while by-passing the control of the US dollar as a reserve currency. The world knows the US dollar is artificially inflated and the US economy is no longer the world consumer powerhouse so the time of privilege for the US is coming to an end.

I got on a roll with this because even though the article below is accurate it is deceiving in what it does not say.

Doug

Subject: The U.S.A. will remain the World's Reserve Currency

The US Will Remain the World's Reserve Currency

By John Edwards | September 07, 2015