0
0

Dollar no longer world reserve currency?


 invite response                
2012 Apr 2, 10:28am   13,464 views  15 comments

by Patrick   ➕follow (55)   💰tip   ignore  

Comments 1 - 15 of 15        Search these comments

1   taxee   2012 Apr 2, 9:41pm  

A printing press does not an economy make.

2   MisdemeanorRebel   2012 Apr 3, 4:22am  

Good story. I think the BRIC-currency part is a pipe dream, those countries are too diverse to share one currency.

However, the IMF replacement and the giving of loans to other countries in their own currency is big news.

Loan recipients have a big incentive to buy from the loaning country, since they would get the loan in rupees or rubles, and less from the US or Europe.

3   HousingBoom   2012 Apr 3, 6:35am  

Patrick - if we do get runaway inflation in the US, how does this affect home prices?

1. Rates will probably skyrocket above 10%. Rates hit 18% the last time we had runaway inflation in 1981

2. Wages will go up (I think) but people's paychecks will mostly be spent on gas and food

4   tim02   2012 Apr 3, 6:49am  

Really interesting story. What happens when the federal reserve stops buying up all the new US debt, and therefore only 31% or less of the treasuries can be sold? I assume the USA then defaults, and the US dollar becomes worthless, resulting in hyperinflation. The banks will be happy if that in turn results in big hyperinflation related wage increases for everyone as that will in turn push up housing prices to beyond the crazy 2007 prices and millions of mortgages will suddenly not be underwater anymore. However, I think we are in uncharted waters overall.

5   Dan8267   2012 Apr 3, 9:34am  

The Federal Reserve is now shitting brics.

6   Dan8267   2012 Apr 3, 9:38am  

BRICS countries will make up 50% of the world GDP. Scary. Especially since it's mostly India and China responsible for that.

Then again, those two countries do have half the world's population.

7   Derek R   2012 Apr 4, 1:37am  

As long as oil is priced in US Dollars, it's going to be the world's reserve currency. All countries need energy so all countries need USD. That's why oil producers that fall out of line like Iraq, Libya or Iran start feeling serious pressure.

8   burritos   2012 Apr 4, 2:41am  

Anyone on this thread willing to move to a BRIC country for 5 years? How about if you were paid 10k to do so? Thought not.

When Americans start fleeing to the BRIC countries in the droves like Latinos and Asians do( or at least try to) with regards to the USA, then I'll start to worry.

9   Tenpoundbass   2012 Apr 4, 4:08am  

My unwanted dollar repository vault, to this day remains empty.
But I'll keep the light on.

10   Dan8267   2012 Apr 4, 4:21am  

Derek R says

As long as oil is priced in US Dollars, it's going to be the world's reserve currency.

And when oil runs out? Or if the BRICS countries stop using oil and start using renewable energy, which China is leading right now?

CaptainShuddup says

My unwanted dollar repository vault, to this day remains empty.
But I'll keep the light on.

It's not a question of dollars having zero value. It's a question of people preferring other currencies to the dollar. I think that BRICS could develop into a great economic threat to the U.S. if our country doesn't get it's crap together.

The mere fact that China and India are cooperating should have you concerned that America will be a second rate economy soon.

11   MisdemeanorRebel   2012 Apr 4, 7:45am  

India is starting to buy Iranian oil in Rupees. Since India's manufacturing is really taking off, Iran can now get top grade technology and equipment directly from India without going through the US/Europe/Japan middle man.

http://rt.com/business/news/india-iran-oil-currency-627/

India's need for oil, and cool relations with the terrorist-supporting Gulf States (Mumbai Terrorist Attack, Punjab and Paki border problems), means they are "Meh" on supporting sanctions on Iran.

China and Russia are also interested in Iran as well.

12   Tenpoundbass   2012 Apr 4, 8:25am  

Yawn now it's India is it? Now they are the boom that isn't happening, any myth to keep the excuse for artificial high Oil prices. In the mean time Jobs are coming back to America not because there is a boom anywhere. But because demand is so low for any growth, The Chinese have taken to intellectual theft and cannibalizing technologies from the Stupid ass American companies they were supposed to be manufacturing for.

There is no growth and there is no Oil demand, so it really doesn't matter how you pay for OIL. OPEC will take wompum just buy some fucking OIL already, Hodgie really don't give a rats ass what currency it is traded in. That's just more Wallstreet hype and spin, to silence the fools whilst they fuck the people in the Ass.

13   Mick Russom   2012 Apr 4, 4:31pm  

HousingBoom says

2. Wages will go up (I think) but people's paychecks will mostly be spent on gas and food

already there. gas $5. chipotle burrito $6.25. rents up. utilities up. We are now working to eat and shelter. USA 2012 is garbage. and they want the unaffordable housing to go higher.

14   Mick Russom   2012 Apr 4, 4:34pm  

tim02 says

hyperinflation related wage increases for everyone a

No. the USA is a net importer. So good luck with hyperinflation leading to rising wages. Wont happen because we need to buy things from other countries just to get by. Stagflation will be how it will play out more than zimbabwe. If Zimbabwe happens, there will simply be a large scale set or wars to reshape the world.

15   Tenpoundbass   2012 Apr 5, 2:18am  

Mick Russom says

HousingBoom says

2. Wages will go up (I think) but people's paychecks will mostly be spent on gas and food

already there. gas $5. chipotle burrito $6.25. rents up. utilities up. We are now working to eat and shelter. USA 2012 is garbage. and they want the unaffordable housing to go higher.

Yeah and all of this while on Bush Jr's watch.

I mean Jr. Jr.

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions