This is from an article I have gotten some of the above quotes from: The Consequences if the U.S. Dollar Loses Reserve Currency Status There will be dramatic consequences that you can hardly imagine if the Dollar finally ceases to be the reserve currency of the world. Should the dollar be dropped as reserve currency, then the value of the dollar will plummet. The immediate painful effects will be that commodities prices skyrocket. These would no longer be priced in U.S. dollars, and you would see the falling value of the dollar buy fewer and fewer commodities. Gasoline at five to ten dollars a gallon is not only possible, but highly likely. Along with higher gas prices would come higher prices for anything that is shipped or uses oil and gasoline as inputs. This means practically everything that you buy, from food stuffs and airline tickets, to cars and washing machines, would all cost dramatically more. As prices skyrocket, your lifestyle would sustain a punishing drop overnight. Unfortunately, this is not the only consequence that you would see of a dollar that is no longer the reserve currency of the world. Interest rates would rise dramatically. They could easily reach ten to fifteen percent. This would wreck housing prices far worse than they are today. It would also cause the stock market to crash and burn by maybe even half in a number of weeks. As the costs of supplies and materials goes up with the falling currency, businesses would be forced to cut back on employees in the light of their similarly falling sales. Unemployment could reach twenty to thirty percent or more as a result of this. As if this is not bad enough, inflation would be sky high along with the rising prices and disappearing jobs.
This is why I'm so concerned about losing reserve currency status and the entitlement driven debt that may cause this.
So why won't you link to it so we can assess the credibility of the source. I ain't buying much of this statement. Why? How does this work? The value of a currency isn't primarily determined by it's being an international reserve currency. If it did, then there is no other currency existing with any value. Who says? Why is my bank going to raise mortgage rates to 15% because Belize decides to trade some Euros instead of dollars. How does it affect supply and demand of housing in America? Once again, this a claim with no legs. Why isn't the European union suffering sky-high inflation? The Euro is not a reserve currency.
I Listed four of the articles above in previous post. Here is two others. I am no expert on this and am not claiming this to be what will happen. This is what has been on the news and radio and I looked it up and read more about it. I put it on here to see what others thought about it. I am no banker and don't know enough about this to say if it's true or not. I put it out here so I can learn more about it from what others opinions were on the subject. What the Dollar’s Reserve Currency Status Means for Your Investments - CBS MoneyWatch.com What If The U.S. Dollar Loses Reserve Currency Status?
