Posted on 03/24/2009 8:51:47 AM PDT by Western Experience
I’ve always cringed when I came across such headlines and statements that said America was at its end. To me, the case has always been overstated and its chances of happening anytime soon are slim. Not because I believe that that America is an eternal empire. That notion is silly has history tells us so. So, it has more to do with no satisfactory replacement or serious challenger to make the case. The demise of America’s dominance over the world is widely believed to start with the ending of the U.S. Dollar hegomy as the international reserve currency and staple of the credit-oriented financial system. It has been a wonderful system of compromise and sharing as all parties involved generally benefit from it.
But, many economist have been warning that America’s irresponsibility and loose fiscal policies would cause a great burden on the rest of the world that essentially back our debt. More importantly, our major backer has grown uneasy at the staggering and escalating numbers that reflect the U.S. debt and with no intentions of slowing down as the Obama administration seems totally inclined to print more money and leave the tab for our foreign partners.
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fat chance
BEIJING (AP) - China is calling for a new global currency controlled by the International Monetary Fund, stepping up pressure ahead of a London summit of global leaders for changes to a financial system dominated by the U.S. dollar and Western governments. The comments, in an essay by the Chinese central bank governor released late Monday, reflect Beijing’s growing assertiveness in economic affairs.
Yes, China is pushing for it now.
If the world dumps the dollar as the reserve unit, each dollar will be worth about .02c. Why would China invest over a trillion only to have their investment destroyed?
Any ideas? Anyone?
Yes, and Russia. I included some issues for concern too. But, it is unlikely any ground will be made in the near time. But they are definitely charting it out.
Did Bernake and Geitner say they were in favor of a global currency (at the House hearing today)?
I think I recall reading that Geithner indicated he was in favor of the global currency suggested by Russia.
Nope the rest of the world won’t bail out the dollar. But I have a disproportionately large percentage of my pension money overseas, and all of my debts at low fixed rates, so even if I don’t get around to buying gold in the next couple of months, when massive dollar inflation hits and the dollar collapses relative to other currencies, I’ll be fine. Well, unless Obama starts confiscating stuff, in which case I’ll have to invest in a couple of AR-15’s and a lot of ammunition instead.
obambi is a magicCoward. The banks have scared Bush and him into raping America for TRILLIONS of dollars, AND there is more harvesting to be done.
Ha! Good comment.
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