The decline of the U.S. dollar

The world knows and is admitting the fact that the U.S. dollar is rapidly being devalued. I have yet to hear about this from the major news outlets or from the U.S. government. This is another sign of the decline of America and the shifting of its power and influence in the world to developing countries. The U.N. has already called for the dollar to be replaced as the world's reserve currency. And now the world's largest bank is calling for a new global reserve currency. Investing websites have also acknowledged this fact, although this website does want to sell you something, and they have recommended investors invest a good amount of their money in foreign currencies--a smart thing to do because that is where most of the growth that will occur in the world will come from. The fact is that the U.S. dollar is being devalued along with America.

"One of the world's largest banks is bidding farewell to the U.S. dollar – just as the dollar faces intense scrutiny at today's G-20 summit and the United Nations announces it wants a new global reserve currency replacement. "The dollar looks awfully like sterling[highly devalued due to the debt Britain owed after that war] after the First World War,' David Bloom, HSBC currency chief, told London's Telegraph. The whole picture of risk-reward for emerging market currencies has changed. It is not so much that they have risen to our standards, it is that we have fallen to theirs. It used to be that sovereign risk was mainly an emerging market issue but the events of the last year have shown that this is no longer the case. Look at the U.K. – debt is racing up to 100 percent of GDP,' he said China and rising Asia can no longer continue holding down their currencies to boost exports because it's hurting their own economies, creating asset bubbles, the Telegraph reported. 'The policy headache was already becoming clear in the final phase of the global credit boom but the financial crisis temporarily masked the effect,' the report states. 'The pressures will return with a vengeance as these countries roar back to life, leaving the U.S. and other laggards of the old world far behind.'" Far behind.

"Craig Smith, president and CEO of Swiss America Trading Corporation, a national investment firm specializing in U.S. gold and silver coins, has been [warning about the decline of the dollar for many years. 'It is now happening before our eyes]," Smith said. "The dollar is getting ready to get hammered, and there is no way for the Fed to stop it.'" I would add that it appears that the Fed's and the government's policies have led to the decline of the U.S. dollar.

I could do another article on America's decline of influence and power on the world stage and the fact that China and developing countries are rising at the expense of America's prosperity. Globalization is becoming more pronounced. The dollar has been on the decline for some time now; but with recent economic conditions, this development has sped up and has become more pronounced. What does this mean for the average person? I think it is interesting because it shows a slow shift of where the power and influence on the world stage will be. If you have your money invested, a good portion should be put in foreign markets and one might like having their money held in a stronger currency or metals. I don't know how this particular development completely fits in to the overall picture of world affairs. I would like to know how this fits into the purposeful attempts of the government through cap and trade and the Environmental movement to transfer the wealth around the world. America's currency along with the whole nation is on the decline while the world as a whole is on the rise.