I have one question, which currency will take its place?
I have one question, which currency will take its place?
the theory is that not just one single currency will replace the dollar, but that it will become one of many currencies used worldwide, causing the dollar to devalue and america to experience extreme inflation.
amongst them, the euro and yuan.
i didn't want to link any articles too early to see what sort of a response i would get as far as how many people are aware of this here, but there is plenty out there to read and watch.
It's going to be a currency made up of bits of every world currency that is a float. Much like bundling mortgages to lower risk, merging currency values according to some as yet undefined formula will make a more stable background currency, less susceptible to 40 crazy people in one countries legislature sabotaging it because they don't like a black President repackaging one of their own plans and making it law under his name.
I voted yes, but the timeline I have in mind is not before the middle part of this century. I don't know enough about it to say what the effects will be, or what it will be replaced by, but I don't think it will be some calamitous event.
Poll needs a timeline to be effective. Very few people would argue that in one million years we'll be using greenbacks.
I voted yes, but it's obviously going to be a long time. It won't happen tomorrow like whatever doomsday story OP read.
Originally Posted by supertouch
for those who asked:
i haven't sucked her penis but i have stroked it. it sounds odd but i don't view it as a masculine organ on her.
What do you even mean? We've been off Bretton Woods since '72ish, that other economies peg their currency to our dollar?
That there will be soaring inflation if other countries stop pegging?
The really fucked up part of this is what happens when all these foreign central banks that are currently holding trillions of dollars decide they don't need them anymore, and sell them off? The value of the US currency absolutely tanks, massive price increases in foreign goods in the US market. With a trade deficit like the US has, that spells disaster for their economy. The only reason the money printing spree post-bretton woods hasn't created massive inflation is because firstly, foreign central banks were holding tons of excess dollars, meaning they couldn't come home and bid up domestic prices. Secondly, most of the money-printing that didn't end up in foreign central banks ended up on Wall Street for "investment banks" to speculate with, leading to massive inflation in non-CPI prices, namely financial assets (dot-com stocks up to 2000, real estate up to 2007, bonds currently). And thirdly, what CPI-inflation there should have been was offset by 500 million Chinese flooding out of the rice paddies and in to the factories, driving down the price of imported consumer goods as China pegged their currency to maximize exports. Of course, there was nothing they could do about things like energy and food seeing huge increases in price, so they labelled those things "too volatile" and pulled them from the CPI.
With all this fear about inflation, there's shockingly little of it to be found in any actual data. Just because transactions will take place in NewCurrency (as others have said, a fictitious currency based on a basket of other currencies -- not all currencies, but probably USD, GBP, RMB, EUR, CHF), which will immediately be converted from any of the other currencies, doesn't mean the Dollar loses value. Central banks aren't holding onto dollars because they can't buy oil with Euros. They're holding on to them because the US makes up 50% of the global economy.
Still no inflation, and austerity has been performing poorly across the pond. We're fine. Inflation is like the new apocalypse. Folks keeps screaming "it's coming!", and yet...no inflation. This nonsense has been going on since at least QE1.
Also, can't vote with those options.
it seems inevitable, doesn't it? We're not living in a post-war, pre fiber optic world anymore.
When actions taken in New York by private authorities can ravage a smaller nation economically and the government of the United States is vocally and publicly opposed to responsible regulation of those private entities... Well, damn, I wouldn't want anything to do with the dollar either and I would get away from it just as quickly as I was able if presented a viable alternative. That's not even subtle. It seems to be, being unstudied and largely ignorant of the issues at hand, the only reason the dollar is the reserve currency is because there aren't viable alternatives. And it seems like the USA has gone to war at least once or twice in service of that convenient fact. So yeah, if a stable trade coalition can offer a viable alternative isn't it the nature of rational business to minimize risk and maximize profit? What is America, really, besides for a stable trade coalition? The biggest one and the most stable.
voted wtf is this even because watching a few episodes of charlie rose doesn't mean I know shit about fuck. I would just assume that with globalization a world currency (backed by a basket of local ones) would emerge. It would seem to be a completely natural, predictable, and logical consequence. Plus it just simplifies everything.
Last edited by Xequecal; 09-20-2013 at 02:23 PM.
basically, the answer is that we are $16 trillion in debt, and with today's vote, there's a real chance of a shutdown on october 1st, followed by our first ever default on federal debt. what happens to the world's view of the dollar if that happens?
The world economy doesn't stop on a dime. Internationally very little would change in the near term, but the voices looking to diminish our effect on the world economy would become more persuasive, and international agreements would reflect this. China has already been making big changes since 2008 to improve their domestic economy so they're less reliant upon exports.
Domestically I think the republican civil war heats up. The youth vote is anti-tea party, and if this shit actually happens they'll become even more radicalized towards socialism.
It feels kinda like the oil shit from the 70s. OPEC got ballsy, and then the west began looking seriously for alternatives. Carter wanted us to use less oil every year thereafter, installed solar panels, etc. We reached an agreement with OPEC, and all that shit went out the window. The oil was flowing and we consumed more rabidly than ever. So really this dollar shit could just be a blip that is overlooked in a few years time, but if it happens again and again, our soft power will come to a crashing halt as the world seeks stable alternatives. The most stable alternatives would probably be Germany and China.
Last edited by Agraza; 09-20-2013 at 08:24 PM.
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
Last edited by Soriak; 09-20-2013 at 10:01 PM.
Eventually it will be replaced by a basket of currencies. I don't think people understand just how insulated we are to inflation with the entire world pricing commodities we don't produce in our currency.
Regardless how slow that bubble pops the effect will be devastating.
article from sunday's ft:
The dollar has no imminent rival as the global reserve currency. America’s “exorbitant privilege”, worth 80 to 100 basis points in lower borrowing costs, would survive a temporary default. Yet fresh evidence of US capacity for self-harm would hasten diversification to other currencies. Between 2000 and 2012, the dollar’s share of global reserves fell from 70.5 per cent to 63.1 per cent, according to the International Monetary Fund, while the US share of global trade fell from 15.8 per cent to 10.9 per cent. In the past five years the renminbi has supplanted the dollar as east Asia’s “dominant reference currency”, says the Peterson Institute’s Arvind Subramanian, who has found that the average movement between Asia’s seven largest currencies and the renminbi is now 60 per cent greater than with the dollar. These have nothing to do Washington’s dysfunction.
It will be replaced by the Canadian Ti're (read: tee-ray)
That's a lot of Monopoly money. Were the the banker and cheating Adebisi?
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