What happens if the world goes off the dollar standard? (transaction, debt)

[Woof Woof Woof!]

Does anyone have any thoughts on this?

Or if you've read any good articles, please post the links.

I haven't seen a lot of talk about this, but I think it's interesting.

Right now, our national debt is funded by foreigners who use U.S. dollars to buy our treasury bonds.

The U.S. dollar is the world's reserve currency. The day the dollar loses its reserve currency role, the US government cannot pay its own bills in its own currency. This will really cut into our standard of living.

With the bailout adding another couple trillion to the US deficit, when do foreign countries get fed up with all this?

[runningncircles1]

Everyone knows that the Illuminati will have gone to a one world currency by then. Gah.

[HappyTexan]

They have the Euro. I've seen articles talking about an Amero (US-Mexico-Canada) but nothing credible. This global financial crisis has seemed to point out that we are more intertwined then we'd like to be as far a currency.

I don't know how that would work out..would China workers and US workers earn the same and get paid the same ? Which standard would prevail..first world countries or third world countries ?

[gwynedd1]

Originally Posted by Woof Woof Woof!

Does anyone have any thoughts on this?

Or if you've read any good articles, please post the links.

I haven't seen a lot of talk about this, but I think it's interesting.

Right now, our national debt is funded by foreigners who use U.S. dollars to buy our treasury bonds.

The U.S. dollar is the world's reserve currency. The day the dollar loses its reserve currency role, the US government cannot pay its own bills in its own currency. This will really cut into our standard of living.

With the bailout adding another couple trillion to the US deficit, when do foreign countries get fed up with all this?

Hi Woof,

Instant currency devaluation and inflation. Its not just reserve currency or there is a reason for it, and its because its an oil/military backed currency. OPEC only accepts dollars. The only two recent ones bucking that trend was Iraq and Iran.

I found this article interesting.

The Proposed Iranian Oil Bourse | Energy Bulletin

[ChunkyMonkey]

Not sure I see an alternative to the dollar. IMO, the only other viable option, the euro, is unproven and the EU has no political union to back the monetary union.

[tallrick]

If the world goes off the dollar standard the world's standard of living improves. Supporting the dollar is a tremendous weight that lowers other living standards. The main problem is how many derivatives out there than will evaporate because they are based on dollar valued assets. It makes me very angry that those in charge of the dollar are stealing the value of it instead of making it a solid currency that all could benefit from.

[KansasChick]

Originally Posted by runningncircles1

Everyone knows that the Illuminati will have gone to a one world currency by then. Gah.

he! he!

[Woof Woof Woof!]

Originally Posted by tallrick

If the world goes off the dollar standard the world's standard of living improves. Supporting the dollar is a tremendous weight that lowers other living standards. The main problem is how many derivatives out there than will evaporate because they are based on dollar valued assets. It makes me very angry that those in charge of the dollar are stealing the value of it instead of making it a solid currency that all could benefit from.

How does the dollar lower other living standards? I'd be interested to know.

Woofers.

[Lulu101]

China's yuan is pegged to the dollar--that keeps it's people mired in poverty.

Originally Posted by Woof Woof Woof!

How does the dollar lower other living standards? I'd be interested to know.

Woofers.

[Mircea]

Originally Posted by Woof Woof Woof!

Does anyone have any thoughts on this?

Right now, our national debt is funded by foreigners who use U.S. dollars to buy our treasury bonds.

The U.S. dollar is the world's reserve currency.

Was. Was the world ITC and IRC. There are now competing currencies, the Euro, Ruble, Yuan and a few smaller ones that don't really have a big impact.

"Foreigners" is a very loose term that doesn't aptly describe the situation. Countries that do heavy trade with the US will buy debt for convenience in trade transactions with the US, which of course sells its things in US Dollars.

Originally Posted by Woof Woof Woof!

The day the dollar loses its reserve currency role, the US government cannot pay its own bills in its own currency. This will really cut into our standard of living.

The majority of developing nations have dumped their US Dollar reserves. Most now hold Swiss Francs, Euros and Rubles or basket currencies related to the Yuan. There's maybe 80 countries that still hold US Dollars. Russia is not one of them.

As far as your standard of living, if you seize control of Central Asia, you'll be fine, if not then about 10-15 years from now Liberia will start looking really attractive as far as jobs, pay and standard of living.