Zimbabwe Adopts the Yuan

We could be seeing the beginning of the end, which has been years in the making. At first glance, the uninformed reader would say “Zimbabwe? Big deal.” However, avalanches don’t start off big, America’s enemy list is exponentially growing world-wide and is far from being untouchable, but most people who invest their time following the Kardashians couldn’t tell you that. As long as the malls are still open, everything is fine.

When the Zimbabwe currency collapsed, they began using U.S. dollars. It was a pretty smooth transition because at the time (2009), the dollar was really very stable. As the global reserve currency, the dollar attracted a great deal of support during the financial crisis. Of course, there were a few problems. One was that while there were plenty of dollar bills to use, there was very little change (meaning coins). The New York Times wrote a story about this reality in 2012: Continue reading

Forget the Shutdown, Our Next Problem is the Dollar

The chatter against the dollar as global reserve currency has ramped up in recent days. The risks are huge and largely ignored. Even allies are questioning how long the dollar can sustain its status in light of our enormous debt and deficit. Now, with the government shutdown in place and a political battle over the debt ceiling, our enemies are looking at the possibility of an attack on our currency during the confusion.

Sadly, too many believe that our dollar will remain permanently strong. Of course, these are in many cases the same people who would argue that deficits don’t matter and that the Treasury could mint $1 trillion platinum coins, essentially making up money out of thin air, and no one would complain. They are living in a fantasy world, emboldened by doctored government statistics that attempt to show there is no inflation in the system. Continue reading

Is the Dollar Dying? Why US Currency Is in Danger

The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business. Continue reading