Reserve currencies don’t last forever

History teaches us that reserve currencies never last for long. As empires rise and fall so too does their currency as a global reserve. It can be argued that poor economics and the resulting demise of a currency can bring about the demise of the empire itself. New evidence suggests that this is true of the Roman Empire. As long ago as 55BC Cicero was raising concerns over the trade deficit. Nothing changes.

But what exactly do we mean when we use the term “reserve currency”. A quick poll amongst friends quickly revealed that very few people have any idea. They are aware of the term itself and no more. Wikipedia says “A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves, and that is commonly used in international transactions“.

Over the years, many currencies have held this enviable position. If you are British you may well be aware the at the pound sterling was the reserve currency for most of the 19th century and the first half of the 20th century as well. Many have forecast that the inequality of a system that gives such an advantage to the host nation means it will never last for long. It is this inequality that causes nations without the ability to print money at will in order to pay their debts, to push for change. There’s no doubt that the “petro-dollar” an agreement forced on the world by an American deal with Saudi Arabia is an intrinsic part of the American advantage.

It has now been rumoured that Russia is about to finalise a $20 billion trade deal with Iran that specifically excludes the use of the dollar. We know that China has already secured similar trade deals with South America.

Bit by bit the tap is dripping.

Every deal that excludes the dollar is another nail in the coffin for the dollar as the reserve currency, a position it has held since the end of World War II where battle-weary destitute countries had little say in the matter.

Why is it important?

Because as investors we need to know what will replace it. The Yuan maybe? A basket of other currencies?Gold?

Remember there’s a big difference between what we use to trade and what we use as a store of wealth. Therein lies the conundrum facing those who are keen to see the dollar replaced.

Why do fiat currencies (paper money with no asset of value to support them) even have a value you may wonder? What is it that makes a note issued by the government have any value whatsoever in the modern world? The answer is that governments make you pay taxes and they insist that you can only pay your tax bill in the currency of their choice. Here’s the clever bit – only they have the ability to print the currency that you pay with. It’s scam – and its a scam you cannot avoid.

Clever eh?


  • At £100 to double-you’re not really competing with large scale seasoned professionals.

    Once you go down the doubling numbers you begin to compete in effect with institutions and or Goverment policy etc(as that kind of continual doubling becomes an Intrest to the other 7 billion people and stated Goverment)

    As a result-after a handful of these ‘doubling’ moves…the ability and time and competing positions from other investors and said governments etc just make the ability a compounded hardness.

    Hopefully as we become more sophisticated we can enjoy these posts but realise they are like any other headline….attention seeking!

    • I’m afraid that none of that is even remotely true, Gerry. Remember, DYWTAM was written by not one, but two, multi-millionaires using these very techniques. I suspect that you’ve been ripped off in the past by the many “get rich quick schemes” that are out there. That’s a real shame. Having done all of the fourteen levels myself, (and I watch others do the same every week), I feel highly qualified to disagree with every single one of your comments. If you’re not rich now then you have to change your thinking if you want to make serious money. Here’s the thing; “If you keep doing what you’ve always done – you’ll keep getting what you’ve always got”. Stop and think about that for a minute. I don’t know if you live in a two million pound house but if you don’t, here you are telling someone who does that this won’t work. Really? The DYWTAM Programme is a genuine no-nonsense guide on how to become a millionaire – and absolutely anyone can do it.

  • Barry, is it only 10 issues of Double your way to a Million? A friend of mine who is interested wants to know, thanks.

  • hi barry i am interested in your horse racing course and your recommendation of using isiris,i understand kevin booth has resigned from isiris do you still recommend we use this company still thank you,and also i notice on your websitethat it is still dated 2017 .

    • Good question. I have not used the Isiris service recently. I had a brilliant 11 year run but eventually I got closed down by all the bookmakers. I guess that’s a real sign of success but it was fun to do and I actually miss it. I did not know that Kevin had actually retired but I understand that the results this year have been extremely good. Maybe regular readers who still use Isiris can update me on that one and let me know how they are doing.

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