 dogmaXYZPremium
join:2002-08-15
Boulder City, NV
kudos:1 | reply to Spice300
Re: Dollar to be dropped as the oil currency by 2018 said by Spice300: If all of the foreign countries start selling their U.S. treasuries to hold money in other currencies, ... Americans would not be able to afford imports. Yes. Right. Exactly right.
Thus the chances of other countries selling off so much dollar based reserves would be a questionable ploy. America would not consume at the rate the rest of the world has become accustomed to, and therefore send any and all foreign economies into turmoil as well ['scuse the intended pun].
I think of it as "vendor financing". Or even better, owing ones soul to the "company store". Our creditors have no profit motive to pull the reserve currency rug out from underneath us. Yeah, that would cause all kinds of economic storms here, possibly including hyperinflation. But it would also mean our creditor overlords would NEVER be paid the interest they want.
Just like the company store, or vendor financing, ...or VISA and Mastercard for that matter, the idea is not to get paid off, but to keep the sucker on the hook forever as he tries to pay it all off. |
| China and India are rising consumer nations while the U.S. is importing less. The current trend indicates the U.S. consumer is descending toward irrelevance because their debt based purchasing power has collapsed. Due to the alt-A and option ARM resets looming in 2011, the U.S. has little chance of recovery until spring 2013. The failure to meaningfully reform U.S. financial markets means we can expect more economic carnage rooted in the greed of Wall Street titans. The U.S. and Canadian economies are more vulnerable to additional oil price shocks than China, Europe and oil exporting countries. The loss of Mexican oil revenue due to their production peaking may result in a war on our southern border that would distract us. The world sees the writing on the wall and is trying to rid itself of U.S. baggage by dumping the petrodollar. |
