I have to somewhat disagree - those few countries that you mention base their economy on the USD for a reason. That in itself is a testament to the strength of our economy, etc. Should America attempt to use something akin to the Euro - this would have an unknown social, political and economical domino affect throughout the world, especially in other countries that use the USD... I do agree with a previous post about 'baby steps' and an overnight globalization toward economical and political unity. Those in power would have the global control, so the value of any other currency would no be so relevant...
G-man has almost got it right there. The IMFs special drawing rights will be forced upon all of us. It's essentially a basket of world fiat currency. This report from Max Keiser explains what's happening nicely (listen from 15:00+). http://www.youtube.com/watch?v=dOhXUSBR3hs The bailouts are not designed to save the system. They are designed to wreck it even more so people will accept any currency thrown at them when it all collapses.
Exactly. China would not be buying this debt if the $ wasn't the reserve currency. This is exactly why the Amero idea isn't going anywhere.
I watched the whole thing. I've been trying to watch more of russia tv. I just don't know too much about them, are they really objective or biased? I don't know... It was fun to watch though, they have interviewed Peter Schiff as well on their channel...
What if our AAA rating drops. Won't people start moving their investments to other country's/investments? And what about the interest we pay on our debt...if that goes up with the debt amount we have would that not drive our currency even worse? I"m not for the Amero and hope nothing like that happens but if our credit gets bad enough we might be faced with going back to a "backed" currency and with a union too...
World currency is coming folks. What exactly it will be based on remains to be seen, but a new monetary, central bank powered currency is just around the corner. Winner take all folks. Hope you all have the preferred bloodlines. Watch Greece and learn.
I've watched plenty of Russia TV. In this case, if you're speaking of their English version, IMO it is highly skewed. Almost propagandish
I concur with Fatima, the reasoning he has provided, plus so many more reasons not broached in this thread.
How the ratings agencies rate the dollar is irrelevant. There is no military power on the planet that has even a hope of defeating the US. We control many of the key resources in the world, and the political system, for all it's squabbling, is extremely sound in terms that we don't have people talking about breaking up the country. Look at what happened to people who thought the Euro was better. Even if the ratings agencies gave the $ junk status, what other country are you going to go to for a safer investment? The Euro, haha. The pound, dropping like a rock in water. The Yen, maybe but Japan is 100% dependant upon exports and it has to import all it's resources. The Yuan, it's controlled by communists and is subject to rash actions by the old dictators of that country. Remember they rolled tanks over their own people who dared to protest. The rest, too small. It's these facts why I contend the $ isn't going to be replaced by the Amero.
It's this simple chart that says the dollar will collapse. Central banks control the worlds currency and they will replace it with whatever they like. As for Russia TV being biased it may well be. But don't pretend that CNBC, CNN or Fox are any better. As always the truth lies somewhere in between.
This is a completely different discussion. Yes what is going on with the handling of the $ and the Fed's monetary policy in conjunction with Wall Street and the big 5 banks is irresponsible. It could eventually lead to a collapse of the system but this does not mean an adoption of a "world" or North American currency as a replacement. If it were to happen, and I think at this point nobody knows what is going to happen to this debt, they could remedy it with a number of different options. For example, they could change the rules about this debt and destroy the ones holding it. (mainly the banks, China and a few other countries). They could redenominate the dollar and put a limit on the conversion. (again destroying a lot of investors) and/or countless other possibilities. When push comes to shove, the politicians will save their own necks first and that is why I would vote for the destroy the investment banks and China option first. The fact of the matter is if the banks are not paid back and for that matter China too, what are they going to do about it? Nixon already did this in 1971. France was demanding tons of gold for the $s it held as gold was still convertable. Rather than empty out the US gold reserves, they simply said they were not going to convert it anymore. The treasury secretary at the time made the very famous statement "It's our currency but your problem." i.e. Too bad for holding US debt. It's this situation that is the biggest reason for holding some wealth in gold. It's a hedge against bad government policy.
Yes, but the two issues are interlinked. When the US$ collapses the same people causing the problems will be the first to suggest "solutions" to it. One of those solutions will be a world currency. There is already talk at the IMF about this, openly available on the IMF website. I hope that this never comes about but sadly we have very little control over these people. The Fed, IMF, BIS are not democratically elected officials. I agree that debt cancellation is one way out but it's not only China that would be ****ed. Retirees and pensioners hold a lot of the debt too.
The head of the Federal Reserve is directly appointed by the President and confirmed by the senate. However, and more importantly, the Federal Reserve is nothing more than a creation of the US Congress and can legislated out of out of existence should they desire to do so. In the place of Federal Reserve notes are the mechanisms for the Treasury to issue US Bank notes as they did until 1971 and/or silver or gold certificates should they decide to go there. The IMF is 20% funded by the US government and the US government has veto powers over anything it does. The US President can essentially dissolve the BIS whenever he chooses. None of these will dictate a world currency as they don't really have any real power that can't be legislated right out of existence. Basically the reason they exist is to let politicians spend money and then push off the obligations to future generations. For most countries there are limits to it but in the case of the $, they won't go there.
Thanks for the info. I was not aware that the US president could dissolve the BIS. Clearly, Ben Bernanke is on the Board of Directors, and the US president may have some influence over him. I'll look into it further. I'm sure you've heard that classic quote from one of the Rothschilds in the 19th century. "I care not what puppet is placed on the throne of England to rule the Empire. The man that controls Britain's money supply controls the British Empire. And I control the money supply." Nothing much has changed since that quote.
If you were to write off the people that we owe then we wouldn't owe anybody. But then who would want the $$$???I think people would be scared of that happening to them. so would that be a vicious circle?No debt, but no value to our $……….. I don't know so I am just asking
This is why national/international credit ratings are important - one cannot just borrow, then refuse to repay. This is part of the internal problem we have in America. If the feds decide to 'just not repay', that would be a fairly stupid move, on many levels...