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I always find Jim Grant to be an quite good at giving historical prospective to present-day financial policy. He seems to think that the world may be moving away from dollars due to the policies of the Federal Reserve. Still, I think the conclusion that he draws here is pretty obvious.
It's interesting that when people talk about raising the debt ceiling, they fail to discuss who we will be borrowing money from. As it turns out, China has dumped almost all of their US bond holdings. The Fed could hold the debt, but that simply leads to more inflation and compounds any confidence problems with the dollar. Confidence problems are a big deal, since dollars really don't represent anything (i.e. they're un-backed fiat currency since 1971: Nixon Shock - Wikipedia, the free encyclopedia). The only reason that dollars are worth anything is because people believe that they are worth something. If that belief changes, the US could become 1948 Argentina in a snap.
Anyway, I'm not entirely sure that I understand how increasing our debt will help us to get out of the hole. Perhaps someone could fill me in.
OMG..you are NOT supposed to be posting what other countries are considering regarding trading in USD. The administration and MSM have gone out of their way to not mention this to the masses of sheeple that only know how to read headlines.
And, because the MSM isn't saying anything, many posters will come on here and tell you that you are delusional for thinking this and posting delusional "made up" videos.
There..got that in right off the bat.
We've been the world reserve currency since WWII. We won't hold it forever, although there are those that think otherwise.
But there is nothing out there as of yet to replace the USD. Lots of talk, lots of suggestions. Emerging nations that are growing do not want to rely on a currency like the USD which is losing it's value with every turn of the printing press.
The only thing that we've got going for us right now is most other currencies suck too. The Swiss Franc used to be a popular safe-haven currency since it was backed by gold, but they abandoned their gold standard in 2001.
Hmm... so... the IMF gets the monopoly on the world's reserve currency? I'm sure they'd like that. We all know that they're on trustworthy and on the up-and-up, though, right?
if the US dollar isn't worth anything, abandoning it is the only option..no?
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