Is It Bad If World Rejects the Dollar?
Submitted by V1-P on Tue, 10/06/2009 - 14:52
I heard after WW2 the world adopted the dollar as the currency to value goods and services to. Prior to WW2 - did it really hurt America the world didn't use the dollar as their global valuation. Didn't the use the sterling (silver) before WW2?
I ask because the G-7 dumped the dollar see here:
http://www.forbes.com/2009/10/05/dollar-g7-yen-markets-curre...
And as reported here:
http://www.guardian.co.uk/business/2009/oct/06/gold-price-do...
»
Thanks
Thanks for all the great replies. I never claimed to understand the ins and outs of high finance so I really appreciate everyone who commented. Thanks again.
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when your poor
what does it matter; when you ain't got a pot to pee in or a window to throw it out.
Losing reserve currency
Losing reserve currency status means that our ability to export our inflation will be significantly impacted. Bad for U.S., but probably good for the rest of the world.
...
Good 4 Us Bad 4 Them
We are the world's largest debtor nation. Why would they reject the dollar? We owe the world trillions of dollars. Rejecting the dollar is like saying they don't want us to pay them back. They can't reject the dollar until either they get paid back or we default on the debt.
They will reject taking on
They will reject taking on more dollars because they might understand that it is a piece of worthless paper that is backed only by more debt. Why would they buy more debt when we can't even pay back what we own without hyperinflation. Whatever debt they hold now is going to have the same equation of worthlessness that the sub-prime mortgages had. So of course they can reject selling us stuff of value for something that has negative value.
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would you rather pay 2.50
would you rather pay 2.50 for a gallon of gas or 10.00 to 20.00?? There is nothing wrong with having the US dollar be the worlds reserve currency.. what has happened is all the idiots that we idiots elected to office over the past 100 years have destroyed the dollar. The government printed money to pay for "social" programs which were nothing more then reelection tickets. if the US had minded its own business, and followed and done what our founding fathers advised, this nation would be 3 or 4 times more rich, and prosporous...
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.
That
That was one of the greatest explanations - thanks so much.
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At first it would hurt
At first it would hurt especially those dependent on the government for money. In the long run it would be great because the huge government would disappear under its burden of debt. The only reason the government was allowed to grow this big is because We exported our debt to other countries via the petro dollar. When the petro dollar is dumped We will suffer massive inflation and then government spending will break down. Social security and welfare will collapse and so will 40% of the federal government. They might try to ratchet up the taxes but then again they would end up having a serious revolution on their hands if that happened. The best part about it is the majority of people will be forced to wake up real quick when they see their savings and buying power wiped out over night..
Not sure it's safe to assume
that Big Government would disappear... I suspect "Government" would be the last thing to disappear.
Wouldn't it be a more likely scenario that "the People" would be left impoverished and in utter desolation with any remaining resources in the heavily-protected hands of the oligarchs? A "Let Them Eat Cake" situation?
And we all know what happened after that!
Can 'WE' all say MASSIVE INFLATION kids?
What do you suppose will happen to the value of the FRN/US Dollar when all those dollars held overseas come flooding back here?
Bueller? Bueller? Bueller?
Are you saying
Are you saying our founding fathers up until world war 2 suffered under massive inflation? As for the FRNs out there now - we can declare bankruptcy as a nation and start over like business does - after all, the UNITED STATES is a business.
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cruel world hates america 'cause its so awesome
whats the difference between the founders' fed govt and ours? oh yeah theirs was limited and ours is leviathan...
it sounds like you are thinking that the only reason we are going to see hyper-inflation is because the rest of the world dumped the dollar... I fear this is going to be the explanation that we are told by the fed/govt/msm... which will lead to renewed hatred toward those parts of the world...not a good thing.
of course, we all know that we have been staving off a dollar collapse for some time. the bailouts, stimuli, and expanding federal reserve balance sheet assured this was going to come to pass... we've all been talking about it for a couple years now. with our current policies, we leave the world no choice but to look elsewhere for stability.
"The War Prayer - Mark Twain"
"The War Prayer - Mark Twain"
no they did not because gold
no they did not because gold and silver were used as currency.. they did not have massive inflation because the fed gov. at that time could not "print" money or debt ..
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.
I like
I like the gold & silver part being our currency. Didn't Russia do this when their economy collapsed?
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'WE' huh?
When the supply of money increases the value of that money decreases. It doesn't matter if it's 2009, 1937, or 1453.
NO WAY OUT
live free or die,
it is the same house of rothschild gang game plan they have been using for centuries. see" my prophetic vision" the soviet union was there test modle for thier vision of the world. prepare and pray
live free or die