We have explained in detail that the U.S. dollar is the next target of economic warfare. We call it Phase Three in the book, Secret Weapon. Now, it should be noted that if the dollar loses its reserve currency status, our economy is in deep trouble. That means that if foreigners ever stop desiring dollars, our Greek-like debt will suddenly become a major problem.
Many say we are fear-mongering. They argue that the dollar will never lose its status. Recently, economist Paul Krugman tried to make an argument that we should simply print more dollars and pay off the debt. This assumes people would still want our paper. Of course, Zimbabwe tried this and their currency collapsed.
The real question then becomes whether or not we could ever cause other nations to turn away from the U.S. dollar. We have documented that many nations have already begun this process. Recently, we found a blog post that had a nice summary:
By Michael, on November 27th, 2012
Make no mistake. There are plenty of nations who perceive us as extremely arrogant to force dollar hegemony on the world. We should understand that no paper currency has ever been permanent. And, we shouldn't bet our future and our children's future that the U.S. dollar can survive a $16 trillion debt growing by $1 trillion or more every year. That is especially true in light of the fact that we are facing a global economic war unprecedented in human history.
And as I noted in a previous article, over the past few years there have been a whole host of new international currency agreements that encourage the use of national currencies over the U.S. dollar. The following are just a few examples…
1. China and Germany (See Here)
2. China and Russia (See Here)
3. China and Brazil (See Here)
4. China and Australia (See Here)
5. China and Japan (See Here)
6. India and Japan (See Here)
7. Iran and Russia (See Here)
8. China and Chile (See Here)
9. China and the United Arab Emirates (See Here)
10. China, Brazil, Russia, India and South Africa (See Here)