Russia Sanctions Accelerate Risk to Dollar Dominance
By Rachel Evans Aug 6, 2014 11:51 AM ET
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While no one’s suggesting the dollar will lose its status as the main currency of business any time soon, its dominance is ebbing. The greenback’s share of global reserves has already shrunk to under 61 percent from more than 72 percent in 2001. The drumbeat has only gotten louder since the financial crisis in 2008, an event that began in the U.S. when subprime-mortgage loans soured, and the largest emerging-market nations including Russia have vowed to conduct more business in their currencies.
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The political powers that be don’t understand that this is reaching the tipping point. Once “we” lose “dollar dominance”, life will be much tougher. Think the Germans in the Wehrmar Republic. We know how that Republic fared. It’s all about a countries wealth and currency.
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