The Giant Currency Superstorm That Is Coming To The Shores Of America When The Dollar DiesMichael Snyder, Contributor Each year, we buy far more from the rest of the world than they buy from us, and so the rest of the world ends up with giant piles of U.S. dollars. This works out pretty well for them, because the U.S. dollar is the primary reserve currency of the world and is used in international trade far more than any other currency is. Back in 1999, the percentage of foreign exchange reserves in U.S. dollars peaked at 71 percent, and since then it has slid back to 62.2 percent. But that is still an overwhelming amount. We can print, borrow and spend like crazy because the rest of the world is there to soak up our excess dollars because they need them to trade with one another. But what will happen someday if the rest of the world decides to reject the U.S. dollar? At that point we would see a tsunami of U.S. dollars come flooding back to this country. Just take a moment and think of the worst superstorm that you can possibly imagine, and then replace every drop of rain with a dollar bill. The giant currency superstorm that will eventually hit this nation will be far worse than that. Most Americans dont realize that there are far more dollars in use in the rest of the world than in the United States itself. The following is from a scholarly article by Linda Goldberg So what would happen if that process suddenly reversed and massive piles of dollars started coming back into the country? It is frightening to think about. Well, I guess the key is to get the rest of the world to continue to have confidence in the U.S. dollar so that will never happen, right? Unfortunately, there are lots of signs that the rest of the world is accelerating their move away from the U.S. dollar. For example, it was recently announced that the BRICS countries are developing their own version of the World Bank And as I noted in a previous article, over the past few years there have been a whole host of new international currency agreements that encourage the use of national currencies over the U.S. dollar. The following are just a few examples 1. China and Germany (See Here) Will this movement soon become a stampede away from the U.S. dollar? That is a very important question. But you dont hear anything about this in the U.S. media and our politicians are not talking about this at all. Meanwhile, our leaders seem to be doing everything that they can to destroy confidence in the U.S. dollar. The Federal Reserve is printing money like there is no tomorrow, and the federal government continues to run up trillion dollar deficits year after year. They do not seem to understand that they are systematically destroying the U.S. financial system. Wow. Why cant most of our politicians see how destructive debt is? What the federal government continues to do is absolutely insane. The national debt increased by more than 24 billion dollars on the day after Thanksgiving this year. But utter disaster has not struck yet, and most Americans are not really that concerned about the debt. So things just keep rolling along. And of course our national debt of $16,309,738,056,362.44 is nothing when compared to the future liabilities that our federal government is facing. Just check out what a recent article in the Wall Street Journal had to say about all this Other economists paint an even gloomier picture. According to economist Niall Ferguson, the U.S. government is facing future unfunded liabilities of 238 trillion dollars. So where are we going to get all that money? Well, why dont we just print more money than ever before so that the U.S. government can borrow and spend more money than ever before? Dont laugh. That is actually what some of the top economists in the country are actually recommending. The most famous economic journalist in the entire country, Paul Krugman of the New York Times, is boldly proclaiming that the solution to all of our problems is to print, borrow and spend a lot more money. He insists that there is no reason to fear that the giant mountain of debt that we are accumulating will someday collapse the system Of course what he is prescribing is complete and utter madness. At some point this con game is going to collapse and the rest of the world is going to say a big, fat, resounding NO to the U.S. dollar. Why should they continue to use a currency that is becoming extremely unstable and that is constantly being manipulated? And when the rest of the world rejects the U.S. dollar, the value of the dollar will drop like a rock because there will be far less global demand for it. In addition, if the rest of the world is not using the U.S. dollar for trade any longer, other nations will cease to soak up our excess currency and huge mountains of our currency that are floating around out there will start flooding back to our shores. At that point we will be looking at inflation unlike anything we have ever seen before. The era of cheap imports will be over and we will pay far more for everything from oil to the foreign-made plastic trinkets that we buy at Wal-Mart. So enjoy this holiday season while you can. There are still lots and lots of cheap imports filling the shelves of our stores. Once the coming giant currency superstorm strikes, we will dearly wish for the good old days of 2012. Yes, the U.S. dollar is alive and ticking for now. But at the pace that our authorities are abusing it, I would not say that things are looking good for a long and healthy lifespan. This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here. 