Great, easy to understand article on how the dollar became the reserve currency of the world and its imminent downfall. If you are looking for an investment, you might want to check out buying the currencies of the BRICS nations or China. Also, of course, gold and silver.
By Simon Black
15 July 2014
Malaga, Spain - Exactly 70 years ago to the day, hundreds of delegates from 44 nations were busy at work in Bretton Woods, New Hampshire creating a brand new financial system.
World War II had just ended. Europe was in ruin.
And since the US was simultaneously the largest economy in the world, the primary victor in the war, and the only major power with its productive capacity intact, it was easy to dictate terms: the dollar would dominate the new system.
Every nation would hold dollars as the primary reserve currency, and the dollar would be redeemable for gold at $35/ounce.
Also, global commerce would be conducted and settled in dollars, and these settlements would clear through the US banking system.
Naturally this created substantial demand from foreign governments who needed to begin accumulating dollars for trade and reserves.
So through a variety of programs, from the Marshall Plan to the IMF and World Bank, the US began flooding the world with dollars.