Yossi Gestetner

If you thought the global population will wait for world bankers to decide the faith of the U.S. dollar, you are dreaming. Instead, bankers, money exchangers and venders worldwide are rejecting the US dollar (USD), plain and simple.

Last night I had a schmooze with a NY businessman who travels a lot to Canada where he has business interests, and follows world economic news since his business interests extends to China too. He says that just days ago, he was at a money exchange in Canada, and got 0.95 in Canadian dollars (CAD) for every US dollar he wanted to exchange, despite the fact that in the official currency market you get these days $1.08 CAD for every USD. He claims that in Israel some will give you now 3 New Shekels (ILS) for each USD instead of the 3.77 ILS the current market rate. In other places (mainly in Europe), as per this businessman, some venders flatly reject the USD, whereas just 12-18 months ago they were willing to accept it in exchange for goods.

I didn’t independently vet these specific incidences, but I recently heard from travelers that they indeed encountered such shtick all over the place (more specifically in Israel and in Europe). Not only do these stories make sense to me, it actually is expected too: people around the world have zero confidence in the U.S. money system regardless the hyped rhetoric about a recovering economy. The world population sees the unsustainable annual deficits. They see how the FDIC is in effect out of money, and they are aware that Social Security has no dime to its name. In the eyes of the world population, the U.S. dollar is now a piece of junk waiting to be burned by the heat of China and Russia asking for a new global currency.

Regardless where this global currency plan will lead, and regardless where the U.S. economy will be in a year from now, the U.S. dollar as it stands today is basically being rejected.