The decision to end the USD's role as worldwide reserve currency is imminent. Some are projecting it to have catastrophic outcomes for the US economy.
The sticking point with all these countries is the US ability to print unlimited amounts of dollars. Overspending by US consumers on imports in excess of exports, US buy-outs of foreign companies and real estate, and the dollars that the Pentagon spends abroad all end up in foreign central banks. These agencies then face a hard choice: either to recycle these dollars back to the United States by purchasing US Treasury bills, or to let the “free market” force up their currency relative to the dollar – thereby pricing their exports out of world markets and hence creating domestic unemployment and business insolvency.
...
The United States is now the world’s largest debtor yet has avoided the pain of “structural adjustments” imposed on other debtor economies. US interest-rate and tax reductions in the face of exploding trade and budget deficits are seen as the height of hypocrisy in view of the austerity programs that Washington forces on other countries via the IMF and other Washington vehicles.
Seems strange that is hardly being discussed. Perhaps its the inevitability of it all or the complexity. Maybe the world will keep thinking the U.S. Economy is "too big to fail". Best we stop antagonizing everyone so the mutually beneficial bailout goes down. Thats just one thing that Bill Mahr and every other "this isn't what I voted for" liberal needs to take time to appreciate about Obama. You can't solve the economy, fix healthcare, and address climate change in a few months as the bill for 30 years of bad decisions comes due.
1 sucka ass fools had something to say:
Holders cannot dump our currency very easily because of the Catch 22 that as they dump, the value of their remaining holdings goes down.
The dumps have to be quiet and gradual.
USA is genius!
Post a Comment