End of US dollar dominance?

[roxxkatt]

lol @ the nervously written responses of American's who are so obviously in denial.

good thing you never read one of them


also, try to learn what an apostraphe is

[PaulOakenfold]

So you are an alcoholic that wants to adopt a child from a country that doesnt have such strict regulations?
I... see...

graduate kindergarten

getting tired of you not being able to read correctly

...well....not really, it's kind of cute sometimes

[Da1andonly]

apostraphe

best thing in this thread

[Doc Flabby]

You know if the chinese had spend all those $$$ instead of hoarding them this whole situation might not have happened.

The chinese enconmy was heavly reliant on exports to the US....thats fine...as long as you keep spending money on US goods and return some of thoses $$ back to the US so that US companies can keep importing Chinese goods. However basically china is now sitting on trillions of us $...which means you've run out of $$ back in the US...hence you are now printing more money so you can keep on buying stuff.

China has the world’s largest foreign exchange reserves, valued at nearly $2 trillion, with more than half of those holdings estimated to be made up of United States Treasuries and other dollar-denominated bonds.

The chinese should be scared about the value of the doller...but they only have themselves to blame for not spending them....by hoarding them they have contributed directly to this financial crisis. They have basically sucked liquididy out of the markets...thus forcing the US and other countrys to print more money.

hopefully that makes sence...but i dont see the doller losing its dominance...

[Dabram]

did you just twice type 'doller'?

[PaulOakenfold]

He just typed doller twice.

[Dabram]

Ah, now I see, indeed he did.

[kthx]

he also typed sence

[TagMor]

good thing you never read one of them


also, try to learn what an apostraphe is

No please tell me WTF is an "apostraphe"?

[Squeezer]

lol @ the nervously written responses of American's who are so obviously in denial.

that would be correct if both Gen and I hadn't said that we foresee the eventual receding of the value of the American dollar. But we didn't. We just said it wasn't likely to happen as early as the Chinese have been letting on recently.

[Jerome Scuggs]

wait... i don't get it. you guys bitch at us americans for not being "with it", but when we finally get around to your ways of thinking, we still get shit? wtf

anyways, this won't happen... the u.s. would go back to gold before doing something this radical. then again, it's "radical" in the opposite direction - tyranny - and therefore, politicians might see it as "necessary".

Keynes himself saw the eventual, ultimate result of his models of economics ending with a global currency. the problem is, keynes never worked out how that just might work. that is why this will never happen - a global, fiat currency would require a complete rewrite and implementation of economics - which is physically, 100% impossible. especially when you have a moron like joseph stiglitz on the UN panel. stiglitz wants to create a new model that will erase "inequity" and "focus on developed nations" - meaning that he's already ignoring hardcore facts about reality, and starting his model from an incorrect viewpoint.

but the fatal, overarching, bar-none refutation lies within the critical error of keynes, which is that such a global currency would still rest on the principle that demand and production can be increased indefinitely. at the point where demand falls off and doesn't rise, keynesian economics lead to extremely disruptive economic bubbles. i don't think this point can really be argued. globally speaking the flaw would present itself in a far more massive level.

and yes, a global currency would require a global reserve bank. what would the bank hold? what store of value, or do people think every country in the world will dump their currencies for even more paper? assuming they do pull that off, how do they then continue to measure the value of the currency - if there is no other currency to measure against? if there is competing currency, then the global currency will be inherently vulnerable to fluctuation - meaning that the goal of an inflationary-free currency is impossible. if there is not competing currency, then there is no possible rational basis for valuation, and economic calculation becomes impossible - because of market and political issues. so the big hype of a global currency - it being "inflation free" and "far more convenient" - is a complete sham. it's not going to ever get past the "talks" stage, and if it ever does, i will bet money that such a system is not economically feasible.

we don't have to worry about the u.s. being fucked overnight via a dollar dump - just that depression that crazy ol' me has been adamant about since before the depression started, and what will happen when our politicians finally realize that they can't fix it and it's not going to end soon.

[Doc Flabby]

wait... i don't get it. you guys bitch at us americans for not being "with it", but when we finally get around to your ways of thinking,

Except we arn't we've run out of money :P
http://www.youtube.com/watch?v=94lW6Y4tBXs

[T3l Ca7]

Your Americans do realise that U.S. is not the only country that buys Chinese products, right?

Also in reality, U.S. dollar is not the only reserve currency. In tough times like this, a lot investors buy Japanese Yen to preserve the values of their portfolio.

On the topic, I doubt the Chinese government was serious about wanting to use an international currency to substitute the U.S. currency. But alas, what more fun can one have than to dance on some other country's grave?! Except the U.S. hasn't became a corpse yet, it was ... well, only half dead.

[Nycle]

Except we arn't we've run out of money :P
http://www.youtube.com/watch?v=94lW6Y4tBXs

Nice speech! But that probably is the only thing I agree with him upon

Your Americans do realise that U.S. is not the only country that buys Chinese products, right?

Indeed. http://www.china-embassy.org/eng/xw/t272113.htm

[Displaced]

I havent read this thread thoroughly, so i apologize if someone else picked up on this:

anyways, this won't happen... the u.s. would go back to gold before doing something this radical. then again, it's "radical" in the opposite direction - tyranny - and therefore, politicians might see it as "necessary".

If there is an economic collapse, do you really think gold would be able to retain any kind of real ´monetary´value?

#1 there isn't enough gold in the world to cover your debt.
#2 the "value" of everything would have to be completely retooled
#3 noone would be able to buy/sell gold anyway since the assumed value would be far too great, and you sure as hell can't eat it :turned: