Post on 08-Feb-2016
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CURRENCY OF THE FUTURE.
Today the currency market is dominated by the US dollar.
At the same time, the position of the US
dollar is not so unarguable as it used
to be in the past.
Тhe threat of a dollar collapse.
means that everyone is trying to sell their dollar-
denominated assets, and no one wants to buy them, driving the value of the dollar down to near 0.
The collapse of the dollar
THE DOLLAR MUST BE WEAK. THERE MUST BE A VIABLE CURRENCY ALTERNATIVE.
TRIGGERING EVENT WOULD NEED TO HAPPEN.
TODAY THE U.S. IS ONE OF THE BIGGEST DEBTOR NATION.
The Outstanding Public Debt as of 05 Apr 2012
If the United States continues to spend and borrow at its
presentpace, the dollar’s status as a
reserve currency will continueto erode.
What if the U.S. dollar slips as the major reserve currency?
Which currency or currencies will dominate global commerce in the years ahead?
The euro.
The euro increasingly offers many of the advantages of the dollar.
The Euro was introduced in 1999 as part of an overall plan to unify
Europe.
Nowadays the euro area’s economy consists of 27 countries and 17 of them have a single
currency – the euro.
Companies cannot fully rely on this currency, because they did not get used to
the euro as a stable medium of international payment and exchange.
Under the current situation in Europe, it is hard to expect the euro to supplant
the dollar.
If China continues to rise for the next 20 years as it has over the last 20 years, the Chinese economy will be the largest
in the world.
No country can grow at double digits forever.
China's growth will sooner than later decelerate.
The USA is working on the new currency, the amero, which will be common for the USA, Mexico and Canada
The dollar, Canadian
dollar and the Mexican peso
will be replaced by the Amero.
The Amero may seem like a good idea,
but right now it is
unbelievable that it can
come to the life.
Nowadays the US dollar still remains the main international currency.