People & Power: Death of the Dollar - Part 1
A country whose standard of living is decreasing cannot be said to be 'making progress' nor will it be a 'superpower'. Full Story »
Posted by Bruce SimsA country whose standard of living is decreasing cannot be said to be 'making progress' nor will it be a 'superpower'. Full Story »
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It would be better without the Michael Moore style melodrama, but factually is accurate compared to the financial pages I visit. The piece details international impacts of the dollar's fall from being the accepted exchange medium that could put the U.S. into 2nd or 3rd world status. The scenario described is that other nations will decline to float our loans on increasingly worth-less dollars, and without manufacturing or salable services to trade, we will be reduced to taking in each other's laundry, if not sneaking into Canada for work as "illegal aliens". Some oil producing nations have or are edging toward trading in Euros or a "basket" of currencies and countries holding trillions of greenbacks are being driven into inflationary angst that makes avoiding the dollar attractive. If China or Saudi Arabia de-pegs from the dollar, "The Greater Depression" could ensue. One issue not addressed is unknown risks; electronic computer enhanced globalized economics is "where no man has gone before" and there are risky guesses being made to fill huge voids in knowledge of the intricate workings of this new system. The "U.S. mortgage crisis" unexpectedly is taking down financial institutions worldwide, and investors are as jittery as cats in a room full of rocking chairs.