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.
Our elected politicians know this. Only Last year, Utah made it lawful to transact in gold & silver coins as money. Transactions conducted in this way are exempt from taxation. Already, businesses have incorporated a debit card just like a credit card to be able to facilitate these purchases, which makes gold & silver a feasible alternative to dollars. Now, Tennessee and eleven more states are considering it. These government officials are aware that there's a possibility of a disaster that may end up with a breakdown of the Federal Reserve. Actually, they weren't the first government officials to take note of this.
Top 10 Reasons Why the United States Dollar Will Lose Its Status as the World's Reserve Currency
1 - The US used quantitative easing that has started a currency war. We can't keep this up without recourse.
2 - The United Nations wants a world that isn't dominated by the US and is now calling for a different world reserve currency.
3 - The IMF has called for a new global reserve currency, they named the Bancor.
4 - China and Japan for the first time, are conducting business using their own currencies, when before, they would convert into US dollars first.
5 - China is now the largest trading partner in Africa and is dealing only in its currency over there rather than the US dollar.
6 - China & Russia have already began trading solely 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 - Iran and India deal with gold during transactions in oil.
9 - The China & the UAE currently conduct business in their own respective currencies for oil deals. The petrodollar system is starting to crumble.
10 - China has overtaken the US as the importer of choice for oil from Saudi Arabia. This could be the death knell of the petrodollar system.
The US has traditionally had quite cheaper oil than everyone else. This is specifically because of the petrodollar system. If that system is terminated, it would be a blow to the US consumer. If the US dollar is no longer the world's reserve currency, it will affect our economy severely and cause a rush back into gold & silver. Both of these events are happening soon. Businesses and state governments are getting ready for this scenario. What about you?
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