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There are certainly limits to which a currency can be pushed by central banks. The financial history of the world is full of collapsed currencies. In this era, we face the possible gradually more erode than collapse type of decline of the US dollar (who is certainly the world's leading currency). When trust in a currency declines (due to the Credit Crisis II, accelerating trade deficits, governmental budget funding by lending replacing governmental income) and therefore the demand for a currency declines, a currency is on it's way back. The US had since World War II the leading currency. First due to Bretton Woods, later due to being the largest economy and the trading currency of many commodities, including oil/gas/coal. Commodities transactions are switching away from the dollar by value decline and trust decline. PeakOil (as in: paying more for energy, water, food and elements) is an extra burden for the currencies of all nations that have energy, water, food and resources (and thereby capital) deficits, not only the US. PeakOil could have the same effect as the Versailles Treaty has on the Mark post World War I. PeakOil also will lead to the creation of a new inflation free international just for calculation purpose use: The KiloJoule Value. This because for every modern economies does, there is energy needed and energy is the main price component. The KiloJoule Value will be come a huge value in (inter)national trade and savings. Never as currency (because than it will be blown up by every one that want to do that), but just as a rock in wild currency seas.

Author: Gijs Graafland

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