Joseph Oberlander
November 14th 04, 09:07 PM
Rob A. wrote:
> Your national security is already compromised by crushing debt. A
> successful major terrorist attack could trigger economic collapse.
> (Consider the
> American dollar. Currently about 70% of the world's currency reserves
> are in US dollars. This preponderence of your currency is due to the
> fact that petroleum is bought and sold virtually exculsively in
> American dollars. Everybody has to convert their EUROs, Yen, Pesos,
> whatever.. to dollars to buy their oil. This means that the American
> dollar is insulated from the vagueries of the money markets. The US
> treasury can print as many dollars as it likes with impunity. And so
> issues like national debt don't matter. It's a bit of an
> oversimplification but the fact remains that dollars can be produced
> to cover any shortfall in the budget.
Within a year, this will swith over to Euros as the international
standard. What can we do about it? Nothing at all - the EU has
more people, more resources, and more GNP, as well as more stability
and cooperation with the rest of the world.
The second this happens, we loose 30% of our dollar's value. In
a year or two, *we* will be the ines having to convert our currency
to Euros.
Oh - we also will loose tons of political and economic leverage
in most smaller nations. Why deal with the big bad thug cramming
Coca-Cola and Nike down your thrat when the EU leaves you pretty
much alone?
> So where am I going with this? Did you know that Venezuela among
> others is campaigning OPEC to accept EUROS as well as American
> dollars? Any sudden loss of confidence in the US dollar will make
> this proposition far more attractive. And so "Defacto International
> Currency" will no longer be a label you can claim for your dollar. You
> will no longer be able to subsidise your debt with the virtually
> infinite value of your dollar internationally. Hence 1/2 a tillion
> dollars will be more than just some paper you need to print to cover a
> budget shortfall.
Our credit rating will also no longer be propped up by it. Expect us
to fall to an "A" rating, or about 2-3 notches down the scale. 15%
loans will be almost impossible to get at the local bank as a result,
which is how Greenspan and others have been pushing us along so far.
With that no longer working, we're screwed.
> Your national security is already compromised by crushing debt. A
> successful major terrorist attack could trigger economic collapse.
> (Consider the
> American dollar. Currently about 70% of the world's currency reserves
> are in US dollars. This preponderence of your currency is due to the
> fact that petroleum is bought and sold virtually exculsively in
> American dollars. Everybody has to convert their EUROs, Yen, Pesos,
> whatever.. to dollars to buy their oil. This means that the American
> dollar is insulated from the vagueries of the money markets. The US
> treasury can print as many dollars as it likes with impunity. And so
> issues like national debt don't matter. It's a bit of an
> oversimplification but the fact remains that dollars can be produced
> to cover any shortfall in the budget.
Within a year, this will swith over to Euros as the international
standard. What can we do about it? Nothing at all - the EU has
more people, more resources, and more GNP, as well as more stability
and cooperation with the rest of the world.
The second this happens, we loose 30% of our dollar's value. In
a year or two, *we* will be the ines having to convert our currency
to Euros.
Oh - we also will loose tons of political and economic leverage
in most smaller nations. Why deal with the big bad thug cramming
Coca-Cola and Nike down your thrat when the EU leaves you pretty
much alone?
> So where am I going with this? Did you know that Venezuela among
> others is campaigning OPEC to accept EUROS as well as American
> dollars? Any sudden loss of confidence in the US dollar will make
> this proposition far more attractive. And so "Defacto International
> Currency" will no longer be a label you can claim for your dollar. You
> will no longer be able to subsidise your debt with the virtually
> infinite value of your dollar internationally. Hence 1/2 a tillion
> dollars will be more than just some paper you need to print to cover a
> budget shortfall.
Our credit rating will also no longer be propped up by it. Expect us
to fall to an "A" rating, or about 2-3 notches down the scale. 15%
loans will be almost impossible to get at the local bank as a result,
which is how Greenspan and others have been pushing us along so far.
With that no longer working, we're screwed.