Trump should reject advice on preserving dollar.

 BETTER TO SEEK TO "MAKE THE DOLLAR GREAT AGAIN"

SANCTIONS AND INTIMIDATION WILL NOT SAVE DOLLAR

Recently it has been revealed that Trump is considering ways to preserve the global use of the dollar in international trade. It has been a strong factor in the success of the U.S. economy. Attempting to force others to use the dollar will in effect hasten its decline as the world's reserve currency.

In 1948, when the dollar became the world's reserve currency, it was adopted because it had the reputation of being "As good as gold". The stable value of the dollar coupled with the United States being, by far, the dominant industrial power remaining after the devastating war. The United States was the most stable society, biggest industrial power and most powerful military in the world. All those previous virtues are now under question.

In 1971, only two years after the United States became committed to a policy of deficit spending, it was forced to sever its tie of the dollar to gold. At that time gold was valued at $35 an ounce, last week it took 2325 dollars to buy an ounce of gold. Did gold become more valuable or did the dollar become less valuable?

Deficit spending has been accepted and has accelerated, some to do with promising ever increasing domestic social benefits, some to do with using the dollar to buy friends and allies around the world. The U.S. has not balanced a budget since 1969, mostly because its standing as the worlds reserve currency sheltered it from true market forces that would have normally challenged the irresponsibility and lack of fiscal and monetary prudence of the United States. Those times are coming to an end and also accelerating.

The United States now has a near $1 Trillion trade deficit, mostly with China and Japan but with most every country. This means every year these countries receive over $1 Trillion in dollars over the amount that they can or are willing to buy from the United States. Often they have parked these dollars in U.S. ever increasing debt and receiving a return that is lees than the inflation created by the deficit spending in the United States. One answer would be to buy products manufactured in the U.S., but that is often difficult as there are is much better value to be had in other places. many purchase weapons made in the U.S. because they were perceived to be the best, but even that is coming into question and many competitive systems are as good and for far less money.

In the last 30 years a new dimension of the dollar has been the use of sanctions and economic punishment to force political submission on other countries, much of this is an outright attack on their culture, religion and social structures. All the while the value of the dollar is continually being diluted to enhance U.S. government spending. It is in fact a fraudulent system that pays the hard work and resources of our economic clients with debased dollars. The move away from the dollar is being embraced by many countries and it is accelerating.

China may be the biggest recipient of dollars and at the same time the U.S. has refused to sell computer chips, farmland and other things that China was willing to buy with these excess dollars. If you are Saudi Arabia, who has been selling the U.S. oil for decades for ever debased dollars, sells oil to China for Chinese Yuan, they have a huge selection of items that they can buy for a better value than just weapons from the United States. It is a no brainer business transaction.

The recent freezing of $300 billion in Russian assets and the United States push to confiscate those assets has accelerated the concern in most foreign countries that they could be next if they do not submit to U.S. wishes.

The role of a reserve currency is its stability, confidence and immunization from political reprisals. That is not the dollar of today.

So, if Trump, or any other president wants to preserve the dollar as the world reserve currency, He first has to make it a solid store of value, not a continually declining value. Then it has to make it a safe store of value, not a weapon to be used to control the cultural, economic and political policies of the countries of the world. Only then will it survive and not succumb to the real market forces that attempting to force that reform. " Make the dollar great again" and everyone will want to use it.