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News Link • Economy - International

Can the World Really Abandon the Dollar As A Reserve Currency?


Roman Coins made it China and there was even the attempt to establish diplomatic relations with China in 180AD as the Chinese historical records prove. Rome was very much like the United States today. It was the largest world economy with a huge consumer base. Even Cicero warned about the trade deficit in 55BC.

Rome was feasting on Asian imports of spices and fine silk. Even the Emperor would not allow anyone to wear the color purple, also an import from Asia. The Silk Road predates even Rome. There was trade between east and west well before even the rise of the Greeks. This is why we find imitations of Greek and Roman coins made in distant lands that are not attempts to counterfeit, but to expand the local supply of such foreign coins that became popular.

The US dollar has filled that same role. When communism fell, dollars became the number one circulating medium of exchange in Russia and China. There were even Congressional hearings on the exportation of dollars to foreign lands. History repeats because the passions driving mankind never change.

It became the dollarization of the world economy just as it had been in ancient times with every dominant economy. The dollar became globalized in part because the USA also never cancelled its currency as was the routine case in Europe. Nations cancelled their currencies to force people to come clean and pay taxes. Some naturally blamed the New York Federal Reserve. Others blamed Soros's currency warfare against the pound akin to invading shock  troops, deployed to destroy resistance in the form  of national credit. All of these wild accusations assumed two erroneous positions:

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