Much-discussed topic, here, but I haven’t mentioned it in a while.
Just heard on the radio that HSBC has released a report in which the bank predicts that the Fed’s “ultra-loose monetary policy” is forcing decisions against the dollar on the part of key nations. Here’s the Telegraph’s article on the matter: “HSBC bids farewell to dollar supremacy” — published Sep. 20.
Here’s the summary under the headline:
The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.
And here’s the first paragraph:
“The dollar looks awfully like sterling after the First World War,” said David Bloom, the bank’s currency chief.
Click on over for the whole article.
As we’ve mentioned before, one of the only reasons America contniues to survive, aside from God’s mercy — or, perhaps, due to — is the fact that those nations whose investments continue to prop us up need us to succeed in order to keep from losing those investments. Rather like investing heavily in a company and then, as the company begins to sink, pouring money into the company’s products in the hopes of keeping it afloat to salvage your investment. (OK, not the best analogy, but hopefully not too torturous.)
As soon as the agony of propping up the U.S. and its dollar becomes more painful to those nations supporting us financially than the discomfort of simply taking a hit and turning to other alternatives, the dollar — and America, which has grown dependent on its supremacy — is in a heap of trouble.
HSBC’s report simply says that they see that day coming in the near future.
We’ve discussed related ideas on this blog many times. Here are a few posts from the past:
- “America and the Dollar Illusion”
- As Europe Strengthens, Dollar Less of a Concern to EU
- On the US Dollar: Remember, your seat may be used as a floatation device…
- Decoupling: World shaking its economic addiction to U.S.?
- The US dollar’s debt to nervous central banks
(It’s likely not all the posts we’ve had here, since all I did to make the list was cheat and do a search on “Steingart” the last name of the man who write the article featured in the first post above and who, I believe, really made the case well in his excellent article to which I refer in that post.)
Better yet, subscribe online to Living Church of God’s News & Prophecy posts which are published multiple times per week and which discuss just these sorts of topics from the perspective of Bible prophecy (e.g., “Economics—Lessons of current history“). (Better yet)², subscribe to Tomorrow’s World magazine, which describes in more detail the potential prophetic implications of circumstances such as these (e.g., “End of the American Lifestyle“). Everything offered by the Living Church of God and Tomorrow’s World is absolutely free.
And, given where the dollar is headed, that’s a good thing.