The US and the UK in the past had the gold standard.
And it ended badly.
that if you needed to get out from under the thumb of the US Dollar. You'd need some currency gold backed or maybe oil backed making it valuable to all the countries of the world simultaneously in order to compete and displace the US dollar. Since they can't compete purely on economic currency markets.
Again: to have currency backed by anything you must have reserves of that thing. You must paid for storage of gold/oil (let's say they was hidden all this time in basement) and them find someone interested in using the new currency.
A lot of someones.
But let we say, we have a Imaginationstan which have a lot of gold (IDK, 20 thousand tonnes) and oil (so anyone can choose to take gold or oil in exchenge of his kewlcoins at wish), they printed their new currency, introduced it into all that fancy computer networks and now the real trouble begins: how force another people and institutions to take kewlcoins for their work or goods?
Some countries other than Imaginationstan will be interested to buy oil or gold, so they will wish to buy kewlcoins. But what they give in exchenge?
Thier own unbacked currencies? Their goods ("hello friend it is Kingdom of Chinka-Chonka i will gib u ten dogs for some kewlcoins. U don't like dogs? we only have dogs, USD and our currency to exchenge, so what you will take")?
Really, detronization of USD is impossible in next centaury because all that workers from Peru, Africa and so one will not accept anything other than local currency or USD. So in the end of a day all trade will be concerned around USD (as a final good to save earnings for later, or as a road to get some local currency). In theory India and Brazil can just trade in their own currencies IF they will not wish to buy something from other countries not interested in their products.
It will be also EXTREME hard to detronize second large reserve currency - euro. This shit mainly due to their wild bindings around whole third world, but also due to high precentage of GDP located in eurozone (yes, still bigger than China - even if we only coun euro using countries, not euro using countries and countries with currencies pegged to euro).
Yet then you admitted that the dollar was indeed being dumped by Germany, but it was totally all because of the DXY, right?
Wow, you finally starting to understand something. Yes,"dumps" took place when one country wishes to make impact on exchenge ratio of owns currency to USD.
You bragged that Germany has massive gold reserves
No, I stated that Germoney has more gold than ruzzia.
why is Germany growing their gold reserves and not increasing their dollar reserves if gold is useless
Look another time on DXY. I will explain it it few bullets:
- some country have a local currency,
- from some reasons they don't want to have growning price of USD in local currency,
- they sell USD for local currency,
- they sell local currency for USD.
Or sometimes just sell USD for gold to make more USD in circulation. You are getting this, yes? Can you finally give any source of your, uhm, unorthodox economy thesis?
Yet then you admitted that the dollar was indeed being dumped by Germany, but it was totally all because of the DXY, right?
Wow, you finally starting to understand something. Yes,"dumps" took place when one country wishes to make impact on exchenge ratio of owns currency to USD.
You bragged that Germany has massive gold reserves
No, I stated that Germoney has more gold than ruzzia.
why is Germany growing their gold reserves and not increasing their dollar reserves if gold is useless
Look another time on DXY. I will explain it it few bullets:
- some country have a local currency,
- from some reasons they don't want to have growning price of USD in local currency,
- they sell USD for local currency,
- they sell local currency for USD.
Or sometimes just sell USD for gold to make more USD in circulation. You are getting this, yes? Can you finally give any source of your, uhm, unorthodox economy thesis?