The Little Book of the Shrinking Dollar: What You Can Do to Protect Your Money Now

Russia and Iran Are Ditching the Dollar

The two countries will carry out their trade with each other using rubles and rials. Add that to the list. China and Russia abandoned the greenback in their bilateral trade more than a year ago.

The big rumble is that the Middle East will follow suit. Imagine if they no longer trade oil in U.S. dollars. It won’t just be Iran as some “alternative” bourse. Plans are at work for a Gulf States cooperation, including Saudi Arabia and Abu Dhabi.

This shouldn’t be too surprising, given that the United Nations itself has called for a “new global reserve currency.” Why? They say it’s dangerous to allow us the “privilege” of building up our massive trade deficit.

“Pretty soon,” says EverBank’s currency guru Chuck Butler, “having the reserve currency of the world isn’t going to be such a big thing, if all the commodity trade isn’t settled in dollars!”

Chuck is definitely in the camp that questions the safe haven currency status the dollar holds.

He doesn’t blame any country for wanting to remove dollars from their reserves. After all, the dollars have lost so much value over the years.

Sure, he points out, it is the most liquid currency in the world, but if countries keep taking dollars out of the terms of their trade, how much longer can it remain the most liquid currency?

It’s a real conundrum that any dollar earner (and investor) needs to be aware of. It doesn’t mean we’ll lose the world’s preferred currency status today, tomorrow, or even next year. ...