dw57

Decline of the U.S. Dollar: Asian Initiative to Create Commodity Based Currency?

not sure that there is any thing to replace the dollar. and in spite of what many seem to think based on their ideologies, its the consumer and business debt that is huge out weighing the Federal debt by many times fold. and asia is worried that the cost of basic materials will go up causing them pay more and become less competitive as the cost of shipping goods becomes higher (since shipping is based on a commodity - oil). and unless they create a consumer class, they will be unable to replace their biggest customers any time soon. and since China is a communist nation, it would seem to problematic since that contravenes their ideology. but without that consumer class, their present economies will fail to be supportable. if China was to make the Yuan convertible, they would lose their competitive edge, but might gain their own economy. but there is no guarantee of success. and for the foreseeable future the dollar will remain the world reserve currency if for no other reason that there is nothing even close to being able to replace it