Anthony Evans78 said:Exactly. The Federal Reserve. The Chinese are already working on phasing it out,
which they've already started doing. The dollar won't collapse right here at home, but its status as the global reserve currency? That's on borrowed time. It’s just a matter of which event finally pulls the trigger.
No, I don't have a specific date. 🙂
Amanda Allen4, we're talking about a global reserve currency here...
Look, people act like the whole dollar reserve issue just popped up overnight, but honestly, this mess has been brewing for nearly fifty years now. It’s not some sudden crisis; it's a long-standing structural headache. If you really want to dig into the roots of this, you have to look back at the 1960s, when central banks everywhere were already sweating bullets over the idea of actually holding dollars as a legitimate asset. It wasn't a new struggle; we've been dancing around this instability for decades. France Germany Back in the early 70s, you had Germany, Japan, and Switzerland all getting pulled into the mix, and before you knew it, Italy and the UK were right there alongside them too.
Back then, the dollar was basically bleeding out because of the Federal Reserve’s obsession with expansionary policies, which meant that any country sitting on a mountain of dollars was essentially watching their wealth evaporate in real-time. It put these nations in this absolutely impossible, high-stakes bind: they could either dump their dollars—and take a massive, immediate hit on their books—or they could let their own domestic currencies appreciate, which, let's be honest, sounded like a total nightmare to most of them. So, naturally, they went with the first option, choosing to offload everything and they ended up forming... The London Gold Pool... honestly, where do we even start with that whole mess? It’s one of those historical rabbit holes that just keeps pulling you down, isn't it? You look back at how they tried to manipulate the price, trying to keep everything pinned down under a certain level, and it just feels like a precursor to so much of the madness we see today. It was this massive, coordinated effort by central banks—big players trying to play God with the markets—and we all know how those little experiments usually end up. They try to hold back the tide, but the tide always comes in eventually, right? It’s just wild to think about the sheer audacity of it all, acting like they could just micromanage global stability through sheer willpower. It makes you wonder what other "stable" systems are actually just house of cards waiting for a breeze.Once the London Gold pool finally went belly up back in '68 and that gold window slammed shut for good in '71, everything shifted, and you saw Germany and Japan basically step up to the plate and agree to let their currencies strengthen.
It’s honestly pretty wild when you look at the parallels between what happened back in Japan and what we’re seeing with China today. You’ve got these two massive export giants, both essentially running on undervalued currencies, which forces them into this endless cycle of hoarding US dollars just to keep the gears turning. It’s like watching history repeat itself in slow motion.
Back in 1973, Japan finally decided they’d had enough of being pegged to the dollar, and honestly, that move kept the yen stuck in a pretty tight corner for years afterward. But if you look at why they did it, they waited until the global economy was absolutely booming in '73 to make their break. Now, looking at the mess we’re dealing with today, it’s night and day—back then, Japan was in a much stronger position to ditch the dollar than China is right now, especially since the global economy feels like it's staring down a massive depression. Because of that, I really don't see China or those other mercantilist Asian exporters walking away from the dollar anytime soon; they just can't afford the risk. It’s the same playbook we saw from Europe and Japan throughout the 60s and 70s—they stayed hitched because, at the time, sticking with the dollar felt like the lesser of two evils.
If you’re looking to wrap your head around the whole mess regarding the history and future of the dollar acting as the world's reserve currency, I honestly can't recommend diving into this enough. Seriously, if you want to understand where we're headed, you really need to check out... Barry Eichengreen: I was just revisiting *Global Imbalances and The Lessons of Bretton Woods* (2006) and *Exorbitant Privilege* (2010), and honestly, it’s refreshing. You know, Barry Eichengreen—he’s actually quite moderate compared to those hardcore gold bugs or that whole "doomsday is coming tomorrow" crowd that seems to populate every corner of the internet lately. He offers this much more nuanced analysis that doesn't just scream about the end of the world every five minutes, which, let's face it, can get exhausting after a while. Jim Sinclair The Countdown to The Implosion of The Dollar I haven't quite figured out what you're getting at here, have I? It’s just a single word floating in the void, like a stray thought lost in a sea of endless economic data and late-night speculation. Are we starting a debate? Are we waiting for a punchline? Honestly, sometimes I feel like I'm staring at a blank ticker tape, just waiting for some actual substance to crawl across the screen so I can finally lose my mind over it. Give me something to work with! James Turk - The Collapse of the Dollar and How to profit fra IT Even she’s basically admitting that the dollar is on its last legs—it's all coming to an end sooner rather than later, if you ask me.
