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

[BIG E]

This....FDR got us out of the depression by creating government jobs for citizens as well as spending money

FDR got us out of the depression by enetring WWII. That is an option here, but I wouldn't recommend it.

 

[blackadder]

Whodunit? Sneak attack on U.S. dollar

Eamon Javers – 1 hr 12 mins ago

It’s the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week?

It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades — a direct threat to the global supremacy of the greenback.

Is it true? Everyone from the head of the Saudi central bank to U.S. officials scrambled to undercut the story, but no matter.

http://news.yahoo.com/s/politico/20091008/pl_politico/28091


The headline is a bit provacative, but that is by design, to frighten you and frame this as some sort of evil plot by evil foreigners to bring down America because it's America.

Back to that in a minute.

The most interesting quote in the story, which says something about the obfuscatory purpose of modern mainstream reporting:

...the possibility represents a threat to the American economy, which has come to depend on the significant advantages it reaps from minting the currency most used around the world.

"Come to depend on...advantages..."

What the reporter is referencing there is the fact that soon after taking the role of provider of the reserve currency, the United States began to abuse it in order to live beyond our means, to keep taxes artificially low and to inflate spending by what amounts to printing money.

So, we are dependent on printing money to maintain the bubble.

It's a dangerous practice that ultimately undermines the currency, as it is doing now. It's an abuse of the privilege and it's a problem created in Washington and New York. There may be folks who will take advantage of the situation, but that is because the situation was presented to them and they will do the same no matter the country issuing the currency.

Soros made billions by attacking the British Pound in the early 90s when it was vulnerable due to poor undelrying economic fundamentals.

Now the dollar is vulnerable because of economic mismanagement and speculators will try to profit from testing the vulnerability. And it's vulnerable specifically due to poor American leadership on many fronts, not because any evil foreigners forced us to borrow and spend.

Beware of shills trying to point fingers and divert responsibility.

This sort of thing has happened to mismanaged countries periodically and when your fundamentals start to take on that profile, you run the same risks.

 

[Crzycjunx76]

invest in the euro or gold

Gold yes, Euro no... the strength of the Euro is false strength built upon a false foundation.

 

[Crzycjunx76]

FDR got us out of the depression by enetring WWII. That is an option here, but I wouldn't recommend it.

FDR got us out of the depression before he entered WWII but it was not the new deal that did it... he got us out of the depression by supplying nations we were friendly with that were involved in WWII. Then after the war the rest of the world was a disaster and we had a virtually untouched production capability and infrastructure which made us the worlds provider... we rode that wave of prosperity for 50 years.