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Many people imply that the US needs no debt, but then again I don't believe these same people realize what the US has being the world reserve currency which is fueled by our debt. Do those people who want us to have no debt, want the world to have a new world reserve currency? I mean, even the Bush administration and US Treasury realized that if the US were to continue down the surplus Clinton years (surpluses are good from time to time like now would be great), the world would be unstable in finding a new world reserve currency. With that being said, I do agree to debt reduction but the thought of zero debt and the loss of the world reserve currency is a scary thought for us; what do you all think?
I think it is on thin ice now. China and Russia are trading with each other in their own currency and have deals with other nations to do the same. You have the IMF issuing SDR's but I do not have a clue on what that amount is. And you have the Saudi "s that have made threats to trade oil in other currencies over U S foreign policy. That last one could be a problem since the Saudi"s could pull other OPEC nations to do the same. It is being chipped away now and I think it will be a big dent or USD will be replaced out right.
I think it is on thin ice now. China and Russia are trading with each other in their own currency and have deals with other nations to do the same. You have the IMF issuing SDR's but I do not have a clue on what that amount is. And you have the Saudi "s that have made threats to trade oil in other currencies over U S foreign policy. That last one could be a problem since the Saudi"s could pull other OPEC nations to do the same. It is being chipped away now and I think it will be a big dent or USD will be replaced out right.
Saudi Arabia should understand the consequences of that; hint: Iraq Part II but on a grander scale. From what I understand China and Russia want the IMF to issue an even greater amount of SDR's, but what I don't understand is what is a SDR backed by? I believe the world doesn't want us to the the World Reserve Currency anymore, but they have to deal with it for the time being, let's hope we retain this position for about two decades more; in the mean time we need to increase our growth, attempt to slow down the rise of the East, all while dealing with serious domestic issues such as immigration, healthcare, and education. With our position as the a World Reserve Currency now we truly need to get all our investments out the way now before borrowing cost go up for us.
I bet England thought the sterling would be the reserve forever and look what happened. When the day comes, and it will, it's going to make the Obama train wreck look like a time of wonder and amazement.
Until the Republicans cant pass a debt limit, the US dollar will be the reserve currency. Its 2014 soon, an election year it should be safe for awhile.
Many people imply that the US needs no debt, but then again I don't believe these same people realize what the US has being the world reserve currency which is fueled by our debt. Do those people who want us to have no debt, want the world to have a new world reserve currency? I mean, even the Bush administration and US Treasury realized that if the US were to continue down the surplus Clinton years (surpluses are good from time to time like now would be great), the world would be unstable in finding a new world reserve currency. With that being said, I do agree to debt reduction but the thought of zero debt and the loss of the world reserve currency is a scary thought for us; what do you all think?
We will lose our place as the world reserve currency and when that happens it will be disaster for us.
As to your argument that without debt we would not be a world currency it needs to be remembered in 1970 our total debt was $283 billion while in 1980 it was $711 billion.
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