PressCoverage

+1..... spot on.

not bad for a guy no one here seemed to ever listen to for years. I got/get the same reaction. Bad news is unpleasant, and the human condition is to reject it, despite all evidence . ... Evidence that seems to compound itself on a weekly basis the past 2-3 years.

As I have said since I joined: Deny the geopolitical signs of collapse at your own peril. It's the first and toughest stage of grief. ... We'll be over here at "acceptance," and planning to adjust accordingly.

maverick4

The rest of the world knows this as well. China and Japan, with their multi-trillions in US dollar reserves, are keenly aware of this fact.


HOWEVER, the moment we try to do this, we screw ALL our foreign investors (not just the Japanese or Chinese), and the dollar and US government immediately lose credibility, and thus their value.

Our currency is based on smoke and mirrors. The moment we try to get out of our debt by trashing our own currency, it becomes even more problematic, because no one will want to buy debt or trust the US government anymore. Look at Argentina.

Also, you would be screwing over the American people as well.
Sure, it'd be nice to pay back China's trillion+ with money that was worth 1/3 as much. But, that also means that it would costs Americans 3 times as much to buy anything foreign, traveling would be extremely expensive, and we wouldn't be able to import as much since no one would want our monopoly-money export anymore.

Holy Diver

Here is how I know its about to all go to $#!T....


The people who I know who traded derivatives, and managed hedge funds, are currently all investing HEAVILY that the price of the dollar will go down.


there is twice as much money being traded than actually exists on Earth. Something has to give, and unfortunatly for US, its the debt riddled dollar.


Hope you all enjoy getting dikked-over by your own countrymen!

PressCoverage

Some good hard-to-deny perspective regarding con men, and their hypocritical joy over this news from Fisk, whom they always hated until yesterday:

Dollar in trouble? Yippie, says the right - How the World Works - Salon.com

What I find most interesting is how this story proves a fundamental law about current right-wing partisan politics. If you're considered "anti-American" while a Republican is president, you must be pilloried at every instance. During the Bush years, Robert Fisk was so hated by the right for his anti-Iraq war reporting and pro-Palestine stance that his very name, "fisk," became Internet slang for the process of demolishing the inaccuracies of someone's reporting via line-by-line online analysis.

But under a Democratic president, anything that can be considered "anti-American" -- such as a supposed worldwide push against the dollar -- must be promoted and lauded and celebrated, simply because it might make Obama look bad. This is the Chicago Olympics theory of the dollar. Thus, a big push from Drudge, as well as links from RedState and Instapundit.

Instapundit! Where proprietor Glenn Reynolds once wrote: "Robert Fisk: Indistinguishable from Islamist propaganda."

The notion that a cold shoulder to the dollar by the world is a specific reproach aimed at Obama's policies, instead of the accumulated irresponsibility of American administrations helmed by both parties over the last 30 years, is just nuts. Watching the right-wing blogosphere embrace one of their most hated foes, simply because his latest scoop can be employed to critique Obama, would be embarrassing and sickening, if it wasn't just so predictable.

Real World

Coke & Pepsi pal. A guy the left loves during the Bush years, is chastised by the right. Now, that same guy is being pimped by the right, to the dismay of the left. The more things change, the more they seem the same.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Wildo7

That's a really great attempt at symmetry, but "to the dismay of the left" is meaningless, let alone the same thing as "chastised by the right."

Real World

Trying to compare us to Argentina is a stretch. Argentina is a 3rd world country without the world's #1 economy under it's hood. I think inflation is a given. The one caveat in all this, is that it's a global economic problem. So while we're in the pooper economically, so isn't everyone else. My question in this thread, is not what's going on with the economy. My question is what a switch from the dollar would mean, with respect to the trade of oil. Obviously we would have to buy oil in Currency X, which would push the cost to us higher, since the dollar is so weak. So it would clearly mean an inflationary reaction to all things petroleum. That's not good, since petroleum is used to make, transport, and deliver so many goods and services. From bringing people to work by way of fuel, to building products in manufacturing, to being the key component to all things plastic, to heating homes, to transporting goods across the globe, etc. So a spike in the cost of oil would be a certain negative. Think of when gas was $4 a gallon, but figure on it being that way more permanantly. Not good.

The benefits would be there though. Not short term, but long term. We'd have more pressure to become energy independent. We'd be forced to become more fiscally responsible. We'd have to withdraw all of our forces from across the globe. We would no longer be able to give away billions of dollars in foreign aid, and we could finally become isolationist. While this would take time, and would be difficult in the short term, it could be a net benefit over the long haul.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

maverick4

I mean, not even sure where to start with the response.

Did you never read any of the say, half dozen threads here already in the past, about petrodollar?


The world IS going to shift away from the dollar in buying oil, and multiple things are going to ***** for us the second that happens.

Luckily, we have nukes and have extreme leaders in certain departments probably crazy enough to use it.... so our decline will likely be slow and gradual rather than quick.