Few realize how the use of the US Dollar in their everyday lives will be impacted if the world shifts away from using USD as a reserve currency.  Many seem to feel detached from economic discussions, as if the rate of the US Dollar will not impact them because ‘they buy everything in Dollars’ – but looking at the simple example of Wal-Mart, there’s no way Wal-Mart would be able to maintain it’s low prices if the Yuan were allowed to float.  Or to use interest rate example, if the US bond market crashes even to a small extent and interest rates rise, this will increase the required payments of anyone with debt.

Despite the quiet nature of things lately from a geopolitical standpoint, coupled with the mainstream media’s obsession with new nominal highs in the various paper indexes, there is definitely turbulence below the surface. There have already been a number of thought-provoking articles written regarding the future of dollar hegemony and the purpose of this week’s piece is to hopefully add to the discussion and stimulate some thought… 

So why spend the time discussing this? Does it really matter to the average person? Absolutely. It couldn’t matter more from a financial standpoint. Every financial transaction you engage in as an economic actor rests firmly on this fraudulent paradigm. Without the dollar standard, your credit cards, paper scrip, and bank accounts would buy nothing. Without the dollar standard, your net worth, minus whatever tangibles you happened to own, would drop to zero, with negative equity because your debts would still exist, just not in dollar form…
“The increased appetite for gold also reflects rising weal

 China’s rural per capita income in the first nine months of the year jumped 12.5% from a year earlier, while urban per capita disposable income rose 9.5%. In April, when the price of gold fell 14% in two days, Chinese media showed images of women clearing shelves in gold shops.”

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