US Dollar - why up?

[Hoop]

Here's an interesting question.

What will happen to the USD if China (HK) depegs their currency to the USD?

My view is... if the USA loses its super power status to other countries (possible scenario some time in the future) then the US $ would cease to be the international trading currency and the new super powered Country's currency takes its place.. and analysts will use that currency as an indicator factor instead.

The big fish in the small pond behaviour???

With the growth rate of China far exceeding that of the USA...analysts are forecasting that China's economy will be bigger than USA sometime in the 2020 decade....and the US $ currency debate will intensify as that decade nears.

The USA seems to be a little uneasy in losing this top dog status (obviously) as other less USA friendly countries are gaining more economic power such as the BRIC group.

Of interest

Growth Potential

Annual Growth rates 2011-2050

Brazil +4.3%
Russia +2.8%
India +6.3%
China +5.2%

source : Goldman Sachs

[delinky]

I am so glad I asked the question. You guys are so helpful and have enabled me to see more outside the square. I receive regular info from someone who resides in the US, who has been trading full time for over 25years and following "what really" is going on. He receives insider information and therefore messages to me are a bit cryptic for a newbie (or maybe I just don't understand the jargon), but basically he has been saying for a while now that US dollar is toast, Bonds are absolutely toast, and a war pending very soon and China are in the background buying up many many commodities. Apparently a new currency is inevitable and a lot more going on behind the scenes that the media is not allowed comment on. Hence, my question in the first place because if it really is all doom and gloom I just didn't get why on earth the US dollar will rise at all. Hoop, you put so much time and effort into replying and I so appreciate it. thank you. I am enjoying trading but truthfully am very confused at all the conflicting info out there.

[STRAT]

I am so glad I asked the question. .

Me too delinky. Thanks everyone.

[Dr_Who]

It looks to me like the Chinese are getting ready to float their currency in the future, maybe a few years time or even sooner. They are currently testing the market to see what the reaction is.

http://www.marketwatch.com/story/chi...ement-facility

I have a tendency to be long on the Hong Kong dollar.

[srotherh]

It looks to me like the Chinese are getting ready to float their currency in the future, maybe a few years time or even sooner. They are currently testing the market to see what the reaction is.

http://www.marketwatch.com/story/chi...ement-facility

I have a tendency to be long on the Hong Kong dollar.

Agree Doc

"The following is a comment made by the Deputy Foreign minister to a group of visiting business people. There was no maybe or conversation on the topic. It was emphatic.

“The financial crisis has fully exposed some shortcomings in the international currency system.

China is not seeking discussions but wants a diversified reserve currency.”

Last week the Bank of China renewed its call for the creation of a super sovereign reserve currency (defined as a basket of currencies) to reduce the dollar’s global domination."