

In Currency the U.S. is Dominant, Europe is Fading, China Is Irrelevant For Now - sethbannon
http://www.npr.org/blogs/money/2013/09/24/225443718/currency-the-u-s-is-dominant-europe-is-fading-and-china-is-irrelevant-for-now

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patrickg_zill
I can't read that article without hearing "Brahm's Lullaby" in my head ...

"Back to sleep / Little sheep / The USD will be / Just fine..."

Not mentioned in the article: China is signing reciprocal agreements with many
countries, which has the effect of completely removing the USD as the
intermediate currency.

For instance, if dealing with Brazil, the central bank of each country allows
for direct Chinese RMB / Brazil real conversion, completely cutting out the
USD's role.

See for example: [http://www.zerohedge.com/news/2013-04-13/china-takes-
another...](http://www.zerohedge.com/news/2013-04-13/china-takes-another-stab-
dollar-launches-currency-swap-line-france)

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pmorici
Seems a funny thing to write an article about and totally devoid of any
meaningful context. A similar article could have been written about smart
phone market share in 2009 when RIM/Blackberry had 42% market share. Look how
well that has turned out for them.

[http://www.comscore.com/Insights/Press_Releases/2010/2/comSc...](http://www.comscore.com/Insights/Press_Releases/2010/2/comScore_Reports_December_2009_U.S._Mobile_Subscriber_Market_Share)

[http://www.forbes.com/sites/ericsavitz/2012/09/25/rim-
bankru...](http://www.forbes.com/sites/ericsavitz/2012/09/25/rim-bankruptcy-
risk/)

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aurelius83
Makes perfect sense to me. As none of these currencies are actually backed by
an asset, the US dollar is probably the most stable and most likely to be
accepted as a means for payment by more people around the world.

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Wingman4l7
Are you implying that the USD _is_ backed by an asset? Because AFAIK, it's not
_(at least not anymore)_.

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killerpopiller
please correct me, but I thought $ receives it's backing through the oil
market.

If one purchases oil, one needs to pay in $.

~~~
Wingman4l7
If one purchases almost anything one needs to pay in $.

I was speaking in terms of _fiat_ money which is not backed by precious metals
anymore.

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Nanomedicine
China will never put their currency in the present trade. They have absolutely
controlling for their own currency, which means nobody can solute their money
except themselves. As all we know, currency inflation is a "hidden" way to
exploit normal people's wealthy and the exploitation can happen between
countries. The independent role of China currency definitely protect the China
from the harvest of financial oligarchy.

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grecy
When the rest of the world finally gets fed up with the US meddling in their
affairs, snooping on them and enforcing their laws on the opposite side of the
earth, I really hope a bunch of countries get together and agree to stop using
the USD for _everything_.

Interesting times ahead, for sure.

~~~
Romoku
Or use Bitcoin.

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ffrryuu
What? Nothing could be further from the truth.

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drone
I have a feeling that you did not read the article at all.

As it clearly states, nearly 44% of global currency trades are USD. Showing a
1.1% rise over the past three years, whereas the Euro is at nearly 17%,
showing a 2.8% drop over the past three years, and the RMB shows a 0.5% rise
to 1.1% over the past 3 years.

Which of those facts do you dispute, and what data set backs up your claim
that this data is not true?

~~~
ohazi
Just a nitpick, but it's really a 1.1% and 0.5% _delta_. Saying that something
is "showing a X% rise over N years" makes it sound like the quantity being
measured rose by X%, which is not the case here. It's made more confusing
because the quantity we're talking about is already a percentage, but still...
The global RMB _fraction_ has grown by 175% (despite remaining significantly
lower than the USD fraction), while the USD fraction has grown by ~2.6%

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jondtaylor
Funny timing. I just finished watching a video on the decline on the US dollar
in global trade. Here is a link:
[http://hiddensecretsofmoney.com/](http://hiddensecretsofmoney.com/)

~~~
rtkwe
That looks like a completely reputable and completely unbiased source with no
monetary motivation or agenda.

~~~
lnsignificant
lol

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Thiz
Sure, printing a trillion bucks a year makes your currency strong, right?

Bubble? I can't hear no bubble popping yet.

