End of US dollar dominance?

[Kolar]

They want the one world currency like most europeans and conspiracy theorist all claim will happen. Who cares. No matter what you do, it will happen or wont, and it will affect everyone not just the US.

The US dollar is the currency all countries keep in reserves so it is in a sense a world currency. If this were to change as Russia and China want and to some extent return to a gold standard it would seriously remove the US from the core of the world economy.

[Exalt]

The US dollar is the currency all countries keep in reserves so it is in a sense a world currency. If this were to change as Russia and China want and to some extent return to a gold standard it would seriously remove the US from the core of the world economy.

and russia and china are the ones everyone listens to these days I suppose right?

HA! And you say the cold war is over! lol It never ended.

[Exalt]

Also, I'll put it this way. The US would attack any country it sees fit to keep itself from going into a complete collapse like that. Also, if you want to completely destroy a country and turn it into Russia, have fun with the nuclear warheads being shipped to terrorists from BOTH Russia and USA. I'm sure the world would be a better place letting Russia and China run it. I'm sure everyone will quit hating so much on the USA at that point.

[Nycle]

They want the one world currency like most europeans and conspiracy theorist all claim will happen. Who cares. No matter what you do, it will happen or wont, and it will affect everyone not just the US.

No, they want to replace the world's reserve currency with something that cannot be easily influenced by a single entity. In other words, a currency that isn't owned by any state.

So what would you think would happen if the US were to attack China to prevent it from letting the US economy 'collapse'? Who else is going to supply you with all the cheap products that make up your wealth?

EDIT: Btw, right now it seems China only made the scare call just before the G20 summit took place in an attempt to give them more sway at the negotiating table. Nothing is likely to change soon. I do however think it points out legitimate problems underlying the global economic system. I'm not a US hater but I'll just say it: much of the wealth that has been created in the States was built on the assumption that America was somehow meant to deserve more than the rest of the world. In times of major technological advantage you can spread your dominance at will and reap the benefits of it if you play it smart. However, technology tends to spread like a cancer among different nations, therefore reducing the power distance between them. It's already happening, other nations are starting to demand more power on the global stage and since there can be only one balance of power, it will shift towards the less empowered at the cost of the powerful, in this case economically.

[Scoop]

No, they want to replace the world's reserve currency with something that cannot be easily influenced by a single entity. In other words, a currency that isn't owned by any state.

So what would you think would happen if the US were to attack China to prevent it from letting the US economy 'collapse'? Who else is going to supply you with all the cheap products that make up your wealth?

It can be argued that our relationship with China is actually detrimental to our country. Nearly all the money we send there does not come back to us. Come on man.

[Nycle]

It can be argued that our relationship with China is actually detrimental to our country. Nearly all the money we send there does not come back to us. Come on man.

Really? When was the last time you saw 'made in China' on anything?

[Scoop]

all I was trying to get at is that china has billions of us dollars that they are hoarding in their banks without reinvesting in the economy they got it from. Somewhat like a leach.

[Scoop]

all I was trying to get at is that china has billions of us dollars that they are hoarding in their banks without reinvesting in the economy they got it from. Somewhat like a leach.

[Doc Flabby]

all I was trying to get at is that china has billions of us dollars that they are hoarding in their banks without reinvesting in the economy they got it from. Somewhat like a leach.

This is essentially whats caused this whole problem. Hoarding money is bad for any economy, you need to keep the money circulating.

I would prehaps suggest this in itself is a form of "economic" warfare.

The result has been the fed is now devaluing the value of the dollers china is holding, because they are refusing to spend them...its having to print more...to keep the supply of money constant...A fall in money supply will generally cause a recession...

http://en.wikipedia.org/wiki/File:Ch..._1960-2007.gif

If china had used all these funds to buy US goods in return, or used it to continue to extend credit to US and European banks...its likely the credit crunch could have been avoided...