Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (5481)	3/25/2008 11:54:53 AM
From: stan_hughes	Read Replies (1) \| Respond to of 71408

I think we're saying the same thing, except my point is that this could be about the fall/devolution of a lot of currencies, not just the USD -- and yes, absolutely, give me gold under these circumstances

To: DebtBomb who wrote (5481)	3/25/2008 12:33:51 PM
From: carranza2	Read Replies (1) \| Respond to of 71408

This is about the fall of the world's reserve currency. The stories about the dollars' death as a reserve currency have been greatly exaggerated. The dollar is clearly in a lot of trouble. But its fall as the reserve currency will not happen as quickly or as dramatically as many think. It will happen, mind you, because nothing lasts forever, but I don't think it will happen as quickly as many think. Reserve currencies last a long time. Think of the dislocation a radical change will mean. First, what currency will replace it? I don't buy the basket of currencies argument. Never has happened, and I doubt it will happen. I don't see a currency which has the attributes of the dollar. Perhaps the euro, ultimately, but not for a long time. The Asians will kill off the golden goose if they start buying their own or each others' currencies to replace dollars. Instant appreciation in the Yen and the renminbi and therefore a severe jolt to their export platforms. I think we'll see the Asians and petroSheiks start to buy properties [real estate, shares, etc.] within the US using their surplus dollars. A perfect way to recycle them, and buy valuable assets on the cheap. It seems to be the only rational way for them to use up their dollars. They can also of course use them for infrastructure and industrialization, thus eventually building up internal demand which will be marked in domestic currency. But these things cannot happen with a dollar which is not the reserve currency. It could be that the next bubble in the US will be caused by foreigners using surplus/excess dollars to buy up American assets on the cheap. Who knows, might save us from the financial terror the Wall St. idiots have wrought upon us.