In the global scheme of things, the US economy, where the world economy spins around, things appear to be getting pretty dicey. It seems that the eagle which was flying with unlimited flight appears to be in a great deal of doubt on whether the eagle can keep flying. The free ride is certainly over and the dollar will soon be devalued and replaced. I thought the warning was interesting but the catch word in the preceding sentence was “soon”.

Many analysts and economists have spoken on the wavelength for a couple of years now, but the timing certainly is unclear. When will the dollar be devalued-in a month, six months, and two years? We are well versed that the dollar will devalue each time the Fed comes up with another QE. The American citizen would not understand unless they buy a car from a store.

The million dollar question is-why doesn’t the US slow down on its dollar printing? The answer is that the US wants to avoid the pain of deflation and slowing business. The fact is that it is the Fed’s policy for the US to sustain at least 2% inflation year after year. The Fed’s idea is-if it follows its inflationary policy, the current $15 trillion of Federal debt will be rendered weak and insignificant in ten or twenty years, due to inflation. People do like a touch of inflation each year. Why? It’s because profits trend higher and everything that they own increases in value. In other words, people like a little inflation, as long as it’s manageable and not too insane.

No secret wisdom will shadow the fact that the gradual decline of the dollar signifies that other currencies must come down in order to remain competitive in the world market. The Fed’s inflation policy is pushing the dollar towards eventual destruction. An increasing number of nations are already considering the dollar “unfit” to be the world’s reserve currency.

The Chinese are on their way to backing their Yuan with part-gold, thus making the Yuan the most wanted currency on earth, and in due time the world’s new reserve currency. Everything points to the reality check that the US dollar will be replaced as the world currency in the near future. Yet the question arises-When?