7 Countries Consider Abandoning the US Dollar
Nov 21, 2007
Many countries are already moving to reduce their dollar holdings, causing the recent plunge in the value of the dollar. Last September, when the euro bought $1.38 US, it was predicted that the value of the dollar would plunge to $1.40 by year's end.
Well, here we are in November, and the dollar has already plunged to $1.48, which is a 10-cent drop in just two months. Because we are talking about trillions of dollars, the losses really pile up for anyone holding dollars. You may only have a few thousand of them yourself, so your losses are minimal. But China holds a trillion of them, and the Middle East holds even more. A 10% drop in the value of the dollar really adds up.
Here's an analysis of 7 countries that are considering more drastic action. If any one of them take a significant step in this direction, the others will probably run for the door as well, causing a stampede.