So today, we could modify (in parentheses) Another's statement about the dollar system:
Today, all currencies are traded against the dollar for it's usage as a medium of oil (and natural gas) exchange! Take away that link and the entire currency / debt exchange system, as we know it will collapse! The US$ must be maintained as the "most used" if the other currencies are to have a chance to survive.A small change, but over time things do change, as technology allows. What does not change is what was mentioned in the last post. You will never hear our politicians publicly debate about the dollar system, or strong dollar policy, or the "exorbitant privilege" of our US debt, because the dollar system creates vast wealth for the 1% and reduced opportunity for the 99%. Buy a million dollar dinner plate at a White House gathering next year and the topics of discussion will change indeed.
Make no mistake, China would hope for the Yuan, and Russia would hope for the Ruble to be the "currency of choice" for trading oil, natural gas and gold (among other items of real world wealth not represented by debt) but the BRICs would settle for the SDR to assume that role, insomuch as a more equitable representation of equity based wealth backs the SDR.
Such are the baby steps toward an equity based system. As Another posited that gold would never serve as the preferred "currency" for the oil (and related true wealth) trade, that remains true today. And it remains true that GOLD is still the ultimate "currency regulator" by which to measure a currencies value against true wealth.
That is to say that when a certain declining nation's debt issuance fails to bail out it's own debt to the world, it will not be the dollar that is traded against for usage. Take away that link and the entire dollar-centric FX regime as we know it will collapse.
Our politicians will talk of "debt" in terms the little people can understand and relate to, but which are completely irrelevant to the larger default ahead. It is preposterous to talk of other countries (and NATO) owing us their fair share of "millions" denominated in our own dollars, especially when we are issuing trillions to cover systemic (derivative) losses.
Still, if the world would accept it, the show could go on long past my lifetime and yours. The world will not. Derivative cyber-warfare may soon make its mark toward global systemic change.