As China will most certainly without a doubt rise to the status of a financial superpower within the next 5 years and cast it’s enormous shadow over the US economy by the year 2018, Africa will become the next ground zero in the greatest currency war the world has seen since the 1930’s, which is now shifting into overdrive.
Brazil, Russia, India, China and South Africa, collectively known as the BRICS nations, are moving forward with their plan to unseat the US dollar from its throne as the world reserve currency and to replace it with a Chinese-denominated “super-sovereign” international currency.
The BRICS are getting ready to overthrow the current global financial regime that has been dominated by the World Bank and the International Monetary Fund since the last global currency war was won at the end of World War II.
However some people may argue that China would be scoring its own goal by challenging the status of the U.S. Dollar as a reserve currency, because any effort by China to sell a significant proportion would lead to a sharp depreciation of the dollar and that would entail a large loss for all dollar holders including China and hence, it would be irrational for China to shoot itself in the foot by shifting its reserves away from the greenback.
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However after the recent American debt ceiling debacle and the general ineptness and fool hardy political elite, many investors are starting to question their faith in U.S. Dollar.
So until next time folks.
In the name of the silver, the gold, and the bit coin. Amen