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The US Dollar's Slow Death




You can hear and read lots of predictions and news about a "dollar crash". But the US currency is more likely to have a slow death, instead of ending in a sudden collapse.

Sudden crash cannot be excluded, but a slow devaluation is much more likely.


Here's why the US dollar could have a "slow death":

 1. Many countries are ditching the US dollar in bilateral trade: Brazil, Venezuela, Iran, Russia, Turkey, India, Japan, China are just some the countries that started avoiding the American currency in trade with their partners - this will threaten the position of the US dollar as a global

 2. The petrodollar system will not hold the dollar for long: in early 2013, the US dollar was still the main currency in oil buying and selling (partly this is what ensured the dollar the global reserve currency status), but the petrodollar system will eventually crash, which will powerfully hit the US currency (this will happen gradually)

 3. Weakening US economy, US financial crisis: the debt crisis, the fiscal cliff will implicate a weaker US dollar

 4. Money-printing: the QE rounds and the late 2012-launched "QE infinity" are diluting the US dollar and will eventually devalue it tremendously - this will be felt after a longer period of time

 5. Loss of investor sentiment: more and more investors and traders are losing their faith in the US dollar - they will avoid it until the dollar becomes highly unpopular (this will lead to a weaker dollar naturally - as "more dollars will be in less hands" and demand will go way down)





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