Is the Dollar going to be replace? (1 Viewer)

SWJJ

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I know you get tired of reading my conspiracy theory posts about globalizations yadda yadda yadda, but :

PITTSBURGH, Pennsylvania (AFP) – The embattled US dollar is expected to come under scrutiny at a summit of developing and industrialized nations following China-led calls to review its role as a reserve currency.

The dollar issue is bound to surface at the two-day meeting in Pittsburgh as US President Barack Obama and other leaders of the Group of 20 economies debate a new framework for tackling the so called global "economic imbalances" blamed for fuelling the latest financial crisis.

"Though not clear how the plan would be enforced, it would involve measures such as the US cutting its deficits and saving more, China reducing its reliance on exports and Europe making structural changes to boost business investment," analysts at French bank Societe Generale said in a report.


full article:
http://news.yahoo.com/s/afp/financeeconomyg20forexuschina

later in the article:
Beijing was the first to call for a new global currency as an alternative to the US dollar as the US deficit rocketed -- the White House estimates it could reach nine trillion dollars over a decade.


Thoughts?

invest in the euro or gold
 

JimEverett

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I don't know what is going to happen as far as the dollar remaining the standard world currency. But, I do find it more than funny that China criticizes U.S. dollar the "imbalances" caused by the dollar while they do everything they can to sustain those imbalances through their artificial pegging of the renmenbi to the dollar.
 

blackadder

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I know you get tired of reading my conspiracy theory posts about globalizations yadda yadda yadda, but :

PITTSBURGH, Pennsylvania (AFP) – The embattled US dollar is expected to come under scrutiny at a summit of developing and industrialized nations following China-led calls to review its role as a reserve currency.

The dollar issue is bound to surface at the two-day meeting in Pittsburgh as US President Barack Obama and other leaders of the Group of 20 economies debate a new framework for tackling the so called global "economic imbalances" blamed for fuelling the latest financial crisis.

"Though not clear how the plan would be enforced, it would involve measures such as the US cutting its deficits and saving more, China reducing its reliance on exports and Europe making structural changes to boost business investment," analysts at French bank Societe Generale said in a report.


full article:
http://news.yahoo.com/s/afp/financeeconomyg20forexuschina

later in the article:
Beijing was the first to call for a new global currency as an alternative to the US dollar as the US deficit rocketed -- the White House estimates it could reach nine trillion dollars over a decade.


Thoughts?

invest in the euro or gold
Not immediately.

But it will cease to be the main reserve because of our economic mismanagement and fiscal profligacy.

There need not be a conspiracy. There is a simple logic that will madate that someone will at least propose the idea of a new global currency administered by a world central bank: efficiency and profit maximization.

Bankers and financiers hate transaction inefficiency and a single fiat currency as the main denomination for global trade reduces transaction costs and boosts profit margins. This alone, whether it is spelled out as such or not, will underpin logic that argues for a new global currency.

Of course, if it comes to pass, as a fiat currency it will be mismanaged and the biggest financial interests in the world will gain a disproportionate influence over it and administer it with their own political and social goals in mind, and in pursuit of their own interests.

Whatever happens, no need to give up the dollar, only to get the fiscal house in order.
 
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BullDawg

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I don't know what is going to happen as far as the dollar remaining the standard world currency. But, I do find it more than funny that China criticizes U.S. dollar the "imbalances" caused by the dollar while they do everything they can to sustain those imbalances through their artificial pegging of the renmenbi to the dollar.
Sssshhh...China good, USA bad. Haven't you got the memo yet?
 

Shockmo

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All you dollar are belong to us.
 

blackadder

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I don't know what is going to happen as far as the dollar remaining the standard world currency. But, I do find it more than funny that China criticizes U.S. dollar the "imbalances" caused by the dollar while they do everything they can to sustain those imbalances through their artificial pegging of the renmenbi to the dollar.
If you know that they enage in these policies, then why do you hand them leverage over your future?

Why do you transfer all your industries there?

Why do you borrow money from them and become beholden to them?

What do you expect?

http://www.cnbc.com/id/33004753/
 
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blackadder

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Sssshhh...China good, USA bad. Haven't you got the memo yet?
Greedy people bad.

The greedy and power obsessed rise to the top of each country and compete with one another.

Then they drag the rest of us along to do the dirty work and the heavy lifting, while the national anthem plays in the background...
 
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blackadder

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Nouriel Roubini wrote an Op-ed piece on this back in May.

http://www.nytimes.com/2009/05/14/opinion/14Roubini.html
This would have serious costs for America, as our ability to finance our budget and trade deficits cheaply would disappear.

This is actually the liablity of system. No one has the disicpline to manage provision of the reserve currency without abusing it.

Without the reserve status of the dollar, it is questionable whether or not we would have gone down the road of debt and spending that we have. Not because we (polititicans) would not have wanted to, but because markets would not have let us.

When your currency is not the reserve, market discipline comes much sooner and you are more quickly penalized for profligacy and for fundamental imbalances.
 
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Jeff Miller

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The way we're going these days, at some point, Dollars aren't going to be worth anything.
 

Yatman

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The greedy and power obsessed rise to the top of each country and compete with one another.

Then they drag the rest of us along to do the dirty work and the heavy lifting, while the national anthem plays in the background...

Nice one. Were I to use a signature line, I'd borrow your sentiment.

Instead, it's just +rep for you. ;)
 

blackadder

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BIG E

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Coming soon the US Yuan.
 

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blackadder

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Coming soon the US Yuan.
Aren't you a little interested in the fact that something of such import -- a fundamental shift in the international financial system -- that has great potential to permanently impact living standards in the U.S. gets so little interest or attention?

Seems to be the way these days with the things that really matter.

I did a quick Google on this and so far only get foreign media giving it much attention:

http://www.skynews.com.au/business/article.aspx?id=380070
 
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BIG E

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Aren't you a little interested in the fact that something of such import -- a fundamental shift in the international financial system -- that has great potential to permanently impact living standards in the U.S. gets so little interest or attention?

Seems to be the way these days with the things that really matter.

I did a quick Google on this and so far only get foreign media giving it much attention:

http://www.skynews.com.au/business/article.aspx?id=380070
I'm very concerned with the fact that our leaders in Washington are spending us into this bad situation. That's why I will try to vote as many of them out of office as I can next year. Unfortunately we are stuck with the bunch of idiots we have until next year.
The deficit spending has got to stop.
 

blackadder

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I'm very concerned with the fact that our leaders in Washington are spending us into this bad situation. That's why I will try to vote as many of them out of office as I can next year. Unfortunately we are stuck with the bunch of idiots we have until next year.
The deficit spending has got to stop.
The unfortunate thing is that expediency always wins.

The only way out of the situation is to endure a lengthy recession as the nation pays off the past excess and set the stage for "organic" growth based on sound fundamentals, not government pump priming. That's the reality. We've got the past 25 years of pump priming to pay for...

Any other avenue in which you are told that we can continue to grow at 3% a year and still have these bailouts, entitlements, wars, deficits etc. and NOT experience any negative consequences is just smoke and mirrors.

And you see which way it's going to go.
 
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