Could gold & silver take over the US dollar and exist as the American legal tender again? The US constitution mandates that gold and silver are indeed currency, but ever since President Richard Nixon stopped the Bretton Woods agreement, they aren’t any longer. So, the United States dollar continues to fall in value, unlike precious metals. Some common people, when noticing the price of gold and silver, see that they have been going up. Yet, that is not the whole picture. When you see that precious metals prices have been going up, what that actually symbolizes is that the actual value of the United States’ dollar has dropped.
Informed elected officials are aware of this fact. Only Recently, the state of Utah deemed it acceptable to transact in gold & silver coins as legal tender. Business conducted in this money are not subject to tax. Consequently, businesses are incorporating an electronic card similar to a credit card to be able to allow for these transactions, making gold & silver a viable alternative to US dollars. Currently, Virginia and eleven other states are considering it also. Yes, elected government officials know that there exists a potential for a tragedy that might end up with a deterioration of the Federal Reserve. Actually, they weren’t the first group to recognize this.
Top 10 Reasons Why the US Dollar Will Lose Its Status as the World’s Reserve Currency
1 – The Federal Reserve used quantitative easing that has started a currency war for the rest of the globe. The world will not stand for this.
2 – The United Nations sees a world that isn’t dominated by the US and as a result is now calling for a brand new world reserve currency.
3 – The International Monetary Fund has also called for a new global reserve currency, they labeled the Bancor.
4 – China & Japan for the first time, will trade with their own currencies, whereas previously, they would convert into the USD first.
5 – Africa’s leading trading partner is now China and is using only in its currency over there rather than US dollars.
6 – China and Russia have already commenced trading only in their own respective currencies last year.
7 – Brazil, Russia, India, China, and South Africa (the BRICS) have prepared to do the same. They will only trade in their own respective currencies from here on. The World Bank’s outgoing President, Mr. Robert Zoellick, is calling for a bank for the BRICS countries.
8 – India and Iran currently exchange with gold for transactions in oil.
9 – The UAE and China now transact in their own respective currencies for deals involving oil. The petrodollar system is in trouble.
10 – China has surpassed America as the #1 importer of oil from Saudi Arabia. This might be the death of the petrodollar system.
The United States has mostly had cheaper oil than the rest of the world. This is a benefit of the petrodollar system. If that system ends, it would be a blow to the US consumer. If the USD is no longer the reserve currency of the world, it will adversely affect the economy and create a push back into gold and silver. Both of these events will happen shortly. Businesses and state governments are preparing for it. Shouldn’t you?
More about the author: Kyle Shasta has researched gold and silver for 15 years. Get more of his free commentary here.
