What will replace the USD?

2014-11-08T16:17:08-05:00

China and Russia have called for the end of the USD as the world's currency. Two major players...

Is Obamacare and the Welfare State destroying everyone's wealth in the United States?

So here's the million dollar question:

What will replace the U.S. Dollar as the world's reserve currency?

Response by SFC Private RallyPoint Member made Nov 8 at 2014 4:23 PM

2014-11-08T16:23:53-05:00

I would think the Euro is the biggest power player in line for that spot.

Response by 1SG Private RallyPoint Member made Nov 8 at 2014 4:34 PM

2014-11-08T16:34:15-05:00

The Amero, it's going to be the new currency to replace USD. The U.S., Canada, and Mexico will use it.

Response by CSM Michael J. Uhlig made Nov 8 at 2014 4:38 PM

2014-11-08T16:38:53-05:00

English is the "world language" so I am sure there is no replacement to the dollar in the near future.

What I see happening is more efficient use of the online banking/wire transfer etc. of funds....As long as we are a functioning country I don't see a power play of any other countries currency surpassing us......I am not an economist by any stretch of the imagination however, I don't see it happening.

Can we continue to be as giving with our social programs for the next few decades without some major adjustments in other programs across our budget - No.

Response by Cpl Ray Fernandez made Nov 8 at 2014 6:03 PM

2014-11-08T18:03:10-05:00

The Euro has problems of its own that has had some countries wanting to dump it. China has their own economic problems now that has kept them from this same push that was made in 2009-2010. Russia wants this to destabilize us which will put them at odds with China since they're still dependent on us for most of their international trade. So at this point I don't see anything replacing the dollar, and looking at currency trends the regained strength of the dollar based on the weakness of other foreign currencies has driven oil prices down which has benefited us in the short term.

Response by CW5 Private RallyPoint Member made Nov 8 at 2014 6:48 PM

2014-11-08T18:48:37-05:00

Some think it will be Bitcoin, SSG(P) Private RallyPoint Member, but I think the dollar will be the world standard for a good long time yet. (Notice that you asked the million DOLLAR question!)

http://money.cnn.com/infographic/technology/what-is-bitcoin/

What is Bitcoin? - CNNMoney

What the heck is Bitcoin?

Response by LTC Yinon Weiss made Nov 8 at 2014 7:17 PM

2014-11-08T19:17:08-05:00

If a replacement would be selected, it is likely to be a basket of currencies and/or commodities. I believe it's less likely that a single currency would displace the USD... not without a major event that presents a tidal shift in global geopolitics.

A shift away from the USD would benefit many countries, so there will be continued pressure to do so. Unfortunately with the pace of US dollar devaluation, this is not longer an unthinkable event. If you look at the graph of the rapid rise in the US monetary base (essentially how much money the government is printing), it appears incredibly irresponsible and putting us on a disastrous long term path.

Image source: http://research.stlouisfed.org/fred2/series/BASE/

Response by Maj Walter Kilar made Nov 9 at 2014 12:58 PM

2014-11-09T12:58:06-05:00

As much as I disagree with the Affordable Care Act, a.k.a. "Obamacare", and the excess of entitlements in America, I am not convinced those issues will be the downfall of the dollar. The value of the dollar is grounded on petroleum for the most part. If Russia and China banded together to get petroleum traded in anything other than the dollar, then I could see trade alliances shaping an international currency based on something other than the dollar. That currency might be a mixture of currencies unless Russia or China head up a trade alliance.