
<p>The headline does not refer to the obvious military and terrorist attacks against American citizens, institutions, military personnel and physical assets in recent years. ; I am referring to the attack on the dollar as the world reserve currency. ; It is not yet open economic warfare, but it is the staging is already underway.</p>



<p>Russia, China and North Korea are the core of an international effort to take down the dollar as the world’s primary reserve currency.</p>



<p>Having the dollar as the international currency ; provides several benefit to the United and to the world economy. ; The dollar plays a role in the stability of world markets – a trust ; that is based on the strength of the American economy and the reliability of dollar as a medium exchange. ; That trust is recognized by both private investors and foreign nations.</p>



<p>(This is true even at the retail level. I found that Chinese merchants preferred to take payment in dollars rather than in their own RMB.)</p>



<p>Dollar power has enabled the United States to exert pressure in shaping global political and economic strategies. ; It is often referred to as “soft power”. ; But that does not suggest it is not highly effective. ; Without dollar power, the United States would lose enormous leverage in international affairs. ; The international demand for the dollar enables the United States to maintain lower interest rates.</p>



<p>Perhaps the cabal’s greatest threat is through China’s digital currency. With the dollar as the reserve currency, the United States could effectively freeze the funds of adversarial nations. It is one weapon in the arsenal of sanctions. Since digital currency does not go through traditional banking systems, it provides a unique opportunity for secret transactions – the type favored by rogue nations and crime syndicates.</p>



<p>China has been leading the effort to replace the U.S. dollar with the Chinese renminbi (RMB) – often referred to as the “yuan”. ; China has already created exchanges – such as the Ganzhou Rare Metal Exchange – based on the RMB. ; These are designed to make the RMB more stable and attractive to foreign investment. ; With the dollar as the world currency, the RMB is just another national currency. ; If China can replace the dollar as the world reserve currency, they – not the United States – will be the most important nation in the world.</p>



<p>Russian President Putin would like the ruble to replace the dollar. As usual, he suffers from visions of grandeur – punching above his weight class. But he is doing his part to undermine the dollar – more as a supporting role to Chinese President Xi. As a means to undermine the dollar, Putin has been promoting the use of the ruble – and at the same time cooperation with China’s more serious threat to the dollar. He has created the Mir payment system as an alternative to the United States’ retail credit systems, such as Mastercard, Discover and Visa.</p>



<p>North Korea is in the game because of its problem with its won – which has been losing value against the dollar. ; Despite his best effort, Kim Jong Un has not been able to prevent North Koreans from favoring the dollar – and even the Chinese yuan –over the won as a more trusted currency.</p>



<p>While Russia and North Korea are attempting to have their currencies more widely accepted in international transaction, they are too unstable to have wide appeal as a reserve currency. ; But they can play a strategic role in helping China.</p>



<p>Not long ago, Iran was a significant member of the international anti-dollar cabal. ; Even United States ally, India, has been showing signs of joining the cabal. Iran is out of play – with huge economic problems due to their miscalculations in Middle East warfare.</p>



<p>Fortunately, China has run into an economic brick wall. ; Its golden dragon economy has become more of a paper tiger. ; The prospect of China expanding into the largest economy in the world in the near future – as many analysts had predicted – has now been put off to the distant future, if at all.</p>



<p>The United States dollar maintains two advantages. ; The first is trust. ; The dollar remains by far the most stable currency in the world – and money markets tend to be more pragmatic than political – as Kim discovered in North Korea. ; In addition, the dollar is deeply embedded in the world financial structure. ; Its roots are many – and they go deep.</p>



<p>While there is no needed to panic at the moment, it would be a mistake to completely disregard the actions of the cabal out of hand. ; The fact that there is now a desire – and a concerted effort – to dislodge the dollar as the world reserve currency is concerning.  ;Just because it will not be easy does not mean it should be ignored.</p>



<p>Though not as widely known to the general public, the war on the dollar can be as potentially dangerous to the United States as our adversaries’ guns and bombs.</p>



<p>So, there ‘tis.</p>

America is being attacked … and few notice
