US Dollar will no Longer be a Global Currency - No longer faith in the US economy reflects a wish to detach from the USD

The era of US Dollar towards it end.28 years time. It plunges against several other
The world is confronted with a painful detachmentimportant currencies like Euro, Japanese Yen, Chinese
from the US economy in the near future.Yuan and Swiss Franc.
Together with China, Russia, Japan and France,The gold also has climbed over 1000 USD pr Onze.
several Middle East Arab states have taken theAs said, the solution is not a new currency by itself,
initiative to detach the oil from the US Dollar.but a lower trade deficit in the USA and a lower
They want to trade the black gold in a currencytrade surplus in the rest of the world.
basket consisting of Japanese Yen, Chinese Yuan,The world has realized that USA cannot continue to
Euro, Gold together with a new common currencylive beyond what it produces of values. They have
planned established for the Middle East Gulf States.to spend according to their abilities.
The challenge goes much wider than the currencyA readjustment of the global trade flows will be
market alone as this expresses and end to the faithneeded, and the US dollar will drop from its artificial
in the American economy and that the US Dollarlevel today to a more sustainable level over a longer
exits the era of being the controlling currency in theterm.
world.Experts are of the opinion that the US Dollar should
The problem is not only solved by the establishmentbe adjusted down with around 50% from
of new currencies as the international trade exchangetoday’s level towards the main currencies in the
creates this situation and needs to be part of theworld.
solution for this as well.This will be the reality at the moment the trade
USA has long time based their economy on a bigbalance out in the USA. How long time this will take,
trade deficit which grows every Year. The countryis not easy to say, however there are signals in the
imports more than it exports Abroad.Obama administration that something has to be done
Since the beginning of 1980 the Americans have beenand that is fast.
willing to buy big amounts of products from AsiaIdeally we would look at a 5% reduction pr year of
amongst others and USA has paid with Bonds inthe US Dollar against other key currencies. That will
return. These State bonds represent USA loanmean that within 10 years this should be the Fact.
papers to the country in question. The excessHowever it is probably too fast for the USA, as their
amount of dollars comes as a consequence of theeconomic challenges will be formidable during this
trade pattern that base itself upon the fact that USAprocess and any administration would need to set
is allowed to continue with a large deficit in theirextraordinary measures into the economy to be able
trade Balance.to handle this fact.
So far, this has been a solution everybody haveIt will be a very painful change for both the USA and
been happy with as long as the Americans werethe reset of the world as the purchase power of the
willing to put themselves into debt.American will be low and they can not afford to
The payment from USA is not anchored in Gold orimport products in the rate they do today, in addition
any other factual Values. They are only anchored in ato that they have to reduce import to create a
faith that the US Dollar will remain strong in the worldtrade balance in the USA.
Economy.Especially economies relying on export to the USA will
At the moment this faith is no longer there amongstbe hurt the most, and the Asian economy is very
the primary trade partners of USA.reliant upon a strong USA. The ripple effects will
The main reason is that there is no measure in USprobably be enormous and magnitudes larger than
State budget to handle the bigger and bigger tradewe experienced in the recession started in 3rd
deficit that grows by the minute.  Therefore mainquarter of 2008 and still is in effect in 3rd quarter of
players within oil and gas begins to question whether2009.
their goods should be priced in a currency they noMillions of workers will be out of work all over the
longer can have faith in.world, and there is already high numbers many places
The US dollar is put into the scrutiny and several G20around the globe.
nations begin to question the fundamentals of the USSome changes have already been taken as a
Dollar and its future.consequence of the financial shake down at the
If these countries no longer will accept the US dollarMoment. China has started several crisis efforts like
as payment, it will collapse, simple as that. If they nobuilding the infrastructure in the country to boost the
longer will sell the oil and gas in US Dollar, thedomestic demand. But there is a limit how much
Americans can no longer buy as much oil and gas asdomestic economic packages you can initiate and
before. They simply can’t afford it, as the dollarperform as it demands lots from the domestic state
will no longer be as valuable as it was before.budgets as well.
This can mean that there will be a surplus of oil andThe future lies in the service industry were one has
gas in the market and the prices will drop, at theto adjust to domestic needs. This means that
same time as the USA must accelerate their effortsChinese workers producing brand products for the
to find alternative energy forms for their industry,USA or Europe needs to change production and begin
residential and for transport.to provide primary domestic services like health care
The dollar is now at its weakest against the Pound inand education and so on.