Continued devaluation of the dollar along with our massive debt is leading to the dollar losing it's reserve currency status. Policymakers see dollar losing reserve currency allure | Reuters inflation will become such a problem that the economy will not be able to cope. Inflation doomed the ussr and it can happen here. America Revealed: U.S. Dollar Devaluation and the I.M.F. the Feds printed close to a trillion dollars out of thin air. China ownes most of our debt. When we devalue the dollar they lose money. What happens when they will not buy our debt anymore? http://www.manufacturing.net/News-China-Tells-US-Not-To-Devalue-Dollar-031309.aspx when the world decides to dump the dollar our ability to maintain our economy will suffer. This is why debt worries me and this is where I get this from. Are these reports and the ones that I see on tv every day wrong and just spreading a false sense of fear? I am no expert and do not pretend to be one. I am concerned more about national debt then I am about lack of social spending. If the economy tanks then there will not be any amount of social spending that will make a diffrence. Imagine what this country could do for it's people if we did not owe 14 trillion in debt.
This is probably what needs to be done. Lower the overall rate and drop most of the deductions/credits. Get rid of payroll tax on self employed individuals and we can still have a slightly progressive structure. My effective rate was too low last year but it's because I spend most of my money on tax deductible things. Dependent care, mortgage interest, investment interest, etc.
That's not what the article said. It said that dollars were losing their allure. There are other strong currencies out there and international finance is diversifying. Bt nobody is talking about abandoning the dollar because the nation that backs it is so secure. The immense Saudi FOrtunes are not held in Saudi Arabia. Their money is invested in America. The Euro has potential to make some money in the short and medium runs, but major wars roll through Europe every half century or so and ruin the place. It could, but it ain't bloody likely. The USSR was doomed by its functionally ineffective collective economy. Inflation was not the worst of Soviet problems by a long shot. Whose are they going to buy instead? Libyan Reserve notes? Venezuelan? The Chinese are not fools. Why would the world dump the dollar. What currency would replace it? Not...gonna...happen. Some of them are doing exactly that. TV is competitive and they will do anything to get viewers. How else do you explain the attention that clown Trump is getting? The economy isn't going to "tank" with all of the cash reserves held by individuals and businesses in this country. They won't allow it. We all want to get something for nothing but when it finally doesn't work, we will pony up and pay taxes. Tax income is the lowest it has been in relation to GDP in 60 years! This is why we are in debt. The republican notion that the solution to a country in serious debt is to pay no taxes at all is insane. :insane:
China is not going to cripple it's biggest customer. It would be economic suicide. Worse if China intentionally tried to crash the US economy, it would be an act of war. China is dependent on ocean commerce to reach its markets. We own the ocean. A blockade would collapse the Chinese economy in a matter of months . . . and our own a few months later. China and the US are in a symbiotic relationship. They will not screw that up.
There are global players that do want the dollar to be replaced. Weather it is fear of American debt or a want to weaken American power it is real. IMF discusses plan to replace dollar as reserve currency - Feb. 10, 2011 Both our friends and potential enemies are discussing this Major Countries calling for end of dollar as worlds reserve currency. another article spells out one experts reasoning on why this may happen As Volcker opines, "We’re faced with broken financial markets, underperformance of our economy and a fractious political climate" because we no longer have "a successful governing model" that the rest of the world admires.* Absent radical restructuring and a new regulatory regime, the dollar will be unable to maintain its "exceptional role" as the world's reserve currency.* It's only a matter of time. I hope you are right that this will not happen. I see republicans saying the sky will fall if debt isn't reined in. I see democrats wanting to continue spending. I understand that spending is to help people that in most cases really need it. Can we afford it? I doubt it. If the world is tired of superpowers and want to start a new world order to replace the post ww2 order that was adopted the way to do it would be to change reserve currency to something else through the un. America will not be defeated in a war. The only way to curb American power may be economically. This is where it will start. As I see it the only way to keep the dollar as wrc is to have a strong stable dollar. We will not maintain a strong dollar with massive debt. We are losing our manufacturing base industries and because of that were in debt. Any true American recovery must start there.
Discussing plans to diversify is not the same as abandoning the dollar. There are damn few currencies that can even compete wit the dollar globally. As their economies grow, developing countries would like to use their own currencies more. But most of them cannot replace the dollar for international exchange. In an ideal world, all currencies would be equally solid and backed by the power of their governments. But the world ain't ideal. The only reason for an international currency is that there just ain't many countries that are big and stable enough for their currency to meet the standards. Talk about the Euro is cheap. People actually completely abandoning the dollar is far-fetched. There is nothing better to replace it with. Chinese money doesn't float and is useless. The Ruble is backed by a weak country with a anemic economy. The Euro has suffered economic failures in Greece, with Ireland, Portugal, and Spain all endangered.
This is what the replacement may be as per the IMF: The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
yes. like the report about salt. the story was presented in a way to make it seem much more threatening than it is. and you are not the only one who is tricked. the left is always tricked by environmental nonsense. red is even tricked by peak oil nonsense. the only thing that really threatens us is these days is economic collectivization, and to a lesser extent, crazy religions and the violence they cause.
