patrick.net

Thanks for posting this, was going to do the same.

Seems the BRICS already are having an impact and will continue to do so.

They don't need to displace the dollar, just reduce its dominance and demand. They already done that. How much more they can do is open.

BUT if they manage to steadily erode demand for the dollar, the US will be harmed in the form of price inflation.

Mor credit is always a good thing.

As the proverb says we may be in for interesting times. ..

It seems to me that one currency will dominate in short order, similar to a beta v vhs type deal.

This may be the black swann thar knocks Humpty Dumpty off the wall?

The BRICS are doing a hell of a lot more than that. They are creating a huge development bank. They are creating the "yuan zone". China has currency swap arrangements with 24 central banks so far. Oil and commodities are going to be valued in RMB or a basket of currencies as well as or instead of dollars. The world is changing fast.

http://www.pressreader.com/uae/gulf-business/textview

Read Goodbye Dollar in the opinion section (you have to register).

The BRICS control 25% of the global gdp but have almost no say in the global banking systems. That is not going to continue forever.

I'm sitting in the Emirates (Umm Al Quwain) for 5 weeks as we speak (maybe I'll post about it). The amount of investment is stunning. The amount of money and business dealings moving around the world is stunning. Most of it is not going to the US or Europe, but to the BRICS instead. It's a whole new world out there.

The US should be very worried. Once the ability to print money with impunity is gone the debt and deficit are going to be a very different problem.

bob2356 says

The US should be very worried. Once the ability to print money with impunity is gone the debt and deficit are going to be a very different problem.

Americans are ignorant of what is going on as they have been trained to believe in the "exceptionalism" of the US.

They scoff that anything of value could be happening out side the US and think that the Dollar is "almighty" and that other currencies are just paper issued by lesser nations.

Sad that the US is no longer the dominant manufacturing/industrial power and has lost its edge in many areas. Sadder still that US citizens think that dominance is unassailable.

The military is still there but even there its not omnipotent having spend the last 15 years policing the globe

bob2356 says

The US should be very worried. Once the ability to print money with impunity is gone the debt and deficit are going to be a very different problem.

Absolutely. Trade Deficits reaching a trillion dollars are not possible without the dollar being the world reserve currency.

I feel this is gonna lead to a currency war. When has human race ever allowed competition to exist peacefully? And if I know anything about wars, its the poor and the middle class who will suffer.