Dollar dropped in Iran asset move (dollars, economic, Walmart, money)

[Blue Grass Fever]

Here is the article - BBC NEWS | Business | Dollar dropped in Iran asset move

Iran finally dropped the dollar for good?! Does war follow?!

Opine....

[GregW]

I guess the economists they (Iran) sent to Harvard and Yale were paying attention in class. Massive devaluation of the currency is the expected result of borrowing money for a war. Wars must be considered a current expense and paid for with direct taxation. We borrowed from ourselves to pay for WW2. The only way we are going to pay for Bush’s wars is with valueless dollars.
If I were the economics minister of any country holding US treasury notes I would be selling them a quickly as possible before their value collapses completely. We would do the same. In fact we did that to the British bonds after both WW1 and WW2. Why do you think the Brits had to sell off their empire including all the Mesopotamian oil?

[Yeledaf]

Originally Posted by GregW

I guess the economists they (Iran) sent to Harvard and Yale were paying attention in class. Massive devaluation of the currency is the expected result of borrowing money for a war. Wars must be considered a current expense and paid for with direct taxation. We borrowed from ourselves to pay for WW2. The only way we are going to pay for Bush’s wars is with valueless dollars.
If I were the economics minister of any country holding US treasury notes I would be selling them a quickly as possible before their value collapses completely. We would do the same. In fact we did that to the British bonds after both WW1 and WW2. Why do you think the Brits had to sell off their empire including all the Mesopotamian oil?

So you Chinese are going to expect to keep selling us Walmart plastic junk and accept worthless dollars in payment?

Good luck with that. Hope you can eat tainted pet food.

[GregW]

I think the Chinese are going to sell worthless junk to themselves and pay themselves in money just as phony as ours. In the meantime the Indians will trade technology for oil and eventually replace both the British and American empires but not require an army to control the new Hindu world. They will use the old standby of controlling the gold.