Some Common Sense?
Senior Member
Joined: Aug 1999
Posts: 1,506
Likes: 0
From: Bakersfield, CA, USA
To summarize, Post WWII we were clearly the world's dominant currency for many reasons, including the overall strength and health of the US economy relative to the rest of the world.
Now we are much less dominant, in no small part because our economic health has declined. The massive debt is one of the problems. Loss of manufacturing is another. We may put a band aid or see minor improvements on these issues every now and then, but the outlook is not good.
We are gradually transitioning to a global economy where the US$ plays a big part, but is in no way dominant. The US economy and $ is fragile, and subject to great risk for further decline. If (when) this happens, the new global norm is likely to be a period where there is no clearly dominant currency.
That is what I meant by the dominance our currency is eroding. There is no other currency that can erode in this fashion, as no other currency was dominant.
Now we are much less dominant, in no small part because our economic health has declined. The massive debt is one of the problems. Loss of manufacturing is another. We may put a band aid or see minor improvements on these issues every now and then, but the outlook is not good.
We are gradually transitioning to a global economy where the US$ plays a big part, but is in no way dominant. The US economy and $ is fragile, and subject to great risk for further decline. If (when) this happens, the new global norm is likely to be a period where there is no clearly dominant currency.
That is what I meant by the dominance our currency is eroding. There is no other currency that can erode in this fashion, as no other currency was dominant.
Technical Article Contributor
Joined: Jun 2002
Posts: 10,511
Likes: 10
From: Under the flightpath of old ORD 22R
I keep hearing the half wit statements of oil not being priced in USD anymore ( like it is priced in USD on the FTSE or CAC ) due to the currency losing its status.
The same half wits will have you believe that there are crates of new North American currency sitting in China waiting to be introduced to North American to replace the USD, CDN, and Pesos as a Euro type currency .
Like the counterfeit capitol of the world is a good place to leave this sitting around.
Thank you for the clarification.
This is where I inferred one thing, and you were going for something different.
Technical Article Contributor
Joined: Jun 2002
Posts: 10,511
Likes: 10
From: Under the flightpath of old ORD 22R
I know there was some cry for foul play with GW Bush ( which was just stupidity talking in the main stream media ), but what really can be done about it.
It is a commodity that is traded on the open market, and more than just the US is involved in it.
They could reduce the taxes, but this would lead to another set of problems ( pave American beautiful ver 2.0 - funded by a grant from China ).
Thread Starter
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Senior Member
Joined: Mar 1998
Posts: 1,719
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From: Blue Ridge Mountains, GA
Medicare/Medicaid/SS account for 57 percent of gov't spending. There is no way in hell the liberals in Congress will touch it.
No serious discussion in cutting spending can be made unless we make massive cuts there.
No serious discussion in cutting spending can be made unless we make massive cuts there.