Imagining a world without the dollar

The Washington Post ^ | April 29, 2011 | Barry Eichengreen

[Tolerance Sucks Rocks]

The dollar doesn’t have much clout these days. The greenback has lost 12 percent of its value against foreign currencies since the chaotic period after the failure of Lehman Brothers in 2008, and nearly 5 percent since the end of 2010.

Economists are debating the end of the era of the dollar, while news organizations paint it as a 98-pound weakling. Our so-called “fiat” currency, backed only by the full faith and credit of the government, no longer commands respect. So wouldn’t we be better off without it?

Imagine you woke up tomorrow and the dollar had vanished. The Federal Reserve was out of the business of supplying money. How would you go about your affairs?

The obvious answer is that life would become one big swap meet. It would be like your local farmers market, except that instead of a vendor selling carrots in exchange for dollars, she would have to trade them for the onions in the neighboring stall or for the paring knife of the cook with no vegetables at all. The problem with this is what economists call “non-coincidence of wants” — the carrot seller may not want onions, and those onions may rot before she finds someone who does.

This highlights the convenience of currency as a medium of exchange and a store of value. It follows that in a world where the United States no longer had a currency, there would be an incentive to use someone else’s.

[kittymyrib]

The biggest loser would be the US government. It has nothing to swap, and there would be no paychecks for the millions of federal functionaries who live off the producers in this country.

[E. Pluribus Unum]

WaPo wants a global Euro.

What a great idea.

[WKUHilltopper]

This is what the globalists have “imagined” for some time—and the traitors in DC are expediting and letting it happen.

[PAR35]

The biggest loser would be the US government. It has nothing to swap,

Wrong. They can swap 'protection'. After all, isn't that the Chicago way?

[Bryanw92]

Anyone who has ever been to a Third World country knows that the locals have their own multicolored money that devalues every day. You also know that they love to take in American dollars. Or, they used to.

Thanks to the banks, the Fed, and the RepubliCrat parties, Americans will soon be able to experience the excitement of illegal currency trading that was previously limited to our Third World neighbors only.

Now, we just have to make our country a port of call for foreign cruise ships and navies.

</sarc>

[Frank_2001]

What are those Euros worth in REAL money, anyhow?/s;)

[pallis]

I would rather imagine an America without Odumbo. Both America and the dollar can be strong again.

[Nick Danger]

WaPo wants a global Euro.

There isn't going to be a global Euro. There isn't even going to be a European Euro much longer.

What the Yurps are finding out The Hard Way is that any currency union that contains both hard-working nose-to-the-grindstone cultures and more laid back 'do it tomorrow' cultures will turn into a wealth pump that takes from the thrifty hard workers and gives to The Other Guys. The thrifty hard workers (AKA "Germans","Scandinavians" etc.) get tired of this. The union breaks up over this vast cultural difference.

Even worse, a single monetary policy for the world makes no sense when there exist countries at widely different stages of development.

[businessprofessor]

I do not see a world without the dollar. I see the world without the dollar as the reserve currency. The dollar could be replaced by another currency, a bundle of currencies, or no reserve currency. International trading would involve currency conversions that could by highly volatile and very unfavorable. I see little alternative to the dollar’s lost status as the world’s reserve currency. Democrats have refused to accept economic gravity on government spending. The large masses of voters receiving government aid will never vote for someone who promises to reduce their government candy. We do not have strong enough protections for property rights in the Constitution. The majority can easily vote themselves the property of the minority. The majority will never surrender this power even after economic collapse occurs.

[dog breath]

Just part of the long range plan to reduce the power, prestige and sovereignty of the United States. This would be a rebellion worthy issue, we are not Europeans.

[Former Proud Canadian]

Unfortunately, you are correct.

[EGPWS]

Imagine you woke up tomorrow and the dollar had vanished. The Federal Reserve was out of the business of supplying money. How would you go about your affairs?

Reminds me of a good TV program when I was a kid.

[blam]

The Next Two Months: Best Case, Medium Case, Worst Case

[blam]

Americans Are Preparing At Unprecedented Levels

[B4Ranch]

>>The majority can easily vote themselves the property of the minority.<<

True. Taking control of it is another matter entirely.

[LomanBill]

>>Imagining a world without the dollar

Nudge... nudge... nudge...

[bkopto]

Agreed. The WaPo and the Dems are carrying out the orders of George Soros: the US Government is to acquire unbelievable amounts of debt, debasing the dollar, leading to its collapse as the reserve currency of the world, reduce the standard of living of the US, and institute SDR (basket of fiat currencies) as the new reserve currency, ultimately leading to a global government.

These elites know better than the people.

[Texas Fossil]

Those who wish to destroy the dollar simply want to have a world without the influence of the United States.

Can you imagine this world without the United State of America? Imagine what would have been left after WWII without our presence, money and blood.

Or without our technology?

Or without our evil oil companies? /sarcasm

Or without our Christians, Jews and other’s generosity?

FUBO! and you Globalist traitors too.

[Texas Fossil]

Parson Malthus