The Impending Collapse of the US Dollar Reserve System.

The US banking system is dysfunctional and the era of dollar-based reserves and floating exchange rates is coming to an end, with the pain being transferred from banks to the real economy. The geopolitical consequences will be enormous, with the shift to a multipolar reserve system and advantage to China's RMB as a competitor to the dollar. Gold will play a bigger role as no other currency can replace the dollar. The greatest danger to dollar hegemony comes from the exhaustion of the financial mechanism that made it possible for the US to run up a negative $18 trillion net foreign asset position during the past 30 years.