Why are countries not abandoning the dollar?
US dollar printing is causing world wide inflation especially in third world countries and now with natural calamities those economies are at the point of break down. Wide spread riots and political turmoils has already shaken North Africa and soon will spread as Fed goes into QE3, QE4…..
The only option for the emerging economies and third world is un-peg their currencies from dollar and conduct all trade in gold or other commodities or local currencies. OR similar to the agreement reached between Russia and China or Iran and India.
The Fed Reserve is now the largest holder of the US treasury bills surpassing China and Japan. US dollar is simply unsustainable and is doomed to crash as they start to default on interest payments for the ever increasing debt (Trillion of just the govern. debt). I do NOT understand why we are not yet seeing a dumping of US dollar.
The further it goes the fall is going to be more rapid and catastrophic. The earlier the dollar is dumped there is some hope for an American revival.