Moderator, Equal opportunity annoyer!
GIM Hall Of Fame
- Oct 15, 2012
- Reaction score
and yet, the dollar hangs out around 100, with others in the toilet,
for 20 years we have been hearing of this 'demise of the dollar'
when in fact, it is but a 'representative dollar', meaning it is a comparison to other currencies,
leading you to the fact that the other currencies are pure rubbish, and the dollar is the leader of the fiats
does this appear as it is collapsing?
View attachment 164393
The $ itself is very safe, while bank credit & debt based dollar substitutes maybe not so much.... With that said, as Scorp pointed out, the dollar denominated bank credit as measured by FOREX remains at the top of the heap. Why? DEMAND for dollar denominated credit & debt alike is greater than all the rest, as it should be. Why is that? The U.S military & intelligence agencies can & do enforce dollar denominated contract disputes anywhere in the world. If your operations are in international commerce, whether you are a buyer or seller, you want to minimize risks from contract disputes and you want an enforcer with teeth & the will to enforce the contract settlement. Therein lays the demand for $ & dollar denominated credit... CONTRACT ENFORCEMENT & SETTLEMENT.
If the U.S. terminated this function, the use of $ & dollar denominated credit & debt in international commerce would lose its demand & appeal to the merchants & nations of the world. Then maybe an arguement could be produced to support a major decline in the $$$ & dollar denominated credit & debt. Until that occurs or the credibility & ability of the U.S. military machine to function is somehow distressed or prevented, the $ & its substitutes will remain the King of the Hill. Which makes all the dollar bears wholley & totally wrong.... for the dollar & its substitutes serve as more than just a mere currency, but rather the "go to" currency for contract disputes, settlements & enforcement... Something that no other currency or nation in the world at this time can offer to the nations & their international merchants engaged in cosmopolitan commerce.