The Bitcoin Blog

The forecast about the impending death of the US Dollar is not a mirage. The following events (some of which have taken place) are great pointers to the fact that somewhere in the horizon the almighty Dollar will have to give way for something better, trusted and viable.  The events are worth emphasis, since each has enormous implications and fallout. Russia  jumped off the Petro-Dollar recycle wagon.  Their entire oil trade will not be kept in US Dollars. Instead, it will be exchanged immediately into Rubles. Expect some to be converted into RMB for their bilateral trade with China. The Russian action is an integral part of the demise of the Petro-Dollar. They react to US-led boycott. The Swiss removed the 120 Euro peg to their Franc currency.  For over three years their central bank had maintained a hoard of paper mache Euro currencies that accumulated perhaps as much as 800 billion Euros. It became unsustainable. They ran a long USDollar trade with ...

The US Dollar! Yes the almighty US Dollar.  I agree there is nothing to be gained celebrating the demise of another entity. But when that entity gradually progresses to the level of a nonentity then of course there is no hard feeling when you celebrate its demise. I have recently been kind of obsessed with the fact that historically all the "big" currencies (Fiat Money) eventually "die" after living out their life span. It has been reported in monetary circles that a new economic system (including new money) emerges after every forty years. This has got me wondering: This mighty dollar that the whole world focuses upon, how did it get to this position of dominance in international trade? How come countries that have strong economic fundamentals still keep the bulk of their reserves in the US Dollar? Is it the result of an unwritten global consensus or is it as a result of higher levels of manipulation whose power is/has now come to an end? The U...