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

To: DebtBomb who wrote (27483)	3/15/2010 9:07:05 PM
From: philv	Read Replies (1) \| Respond to of 71456

My opinion is that a downgrade of the US dollar would be the beginning of the end of the entire world's monetary system. The US will be the last currency to be downgraded, not only because it is the main reserve currency, but also because of the predominance or hegemony of the US dollar in world trade. But I don't know what would take its place, or what would take the place of the world's fiat money system. Gold bugs of course hope it would be gold, and argue that gold is money, and every other currency would be measured against it. I'm sure you are quite familiar with all of that.

To: DebtBomb who wrote (27483)	3/16/2010 10:13:00 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

It's not time for that yet. Some countries are even in more mess than we are, and the long term liabilities (SS and Medicare) don't count until it's time. This is a long term problem. While the dollar bears are waiting for a "click" or a trigger, the situation will only deteriorate if and when interest rates start rising against the Fed or foreign countries start unloading their USD reserves. There is a chance that the dollar devaluation happens quickly. China currently maintains a PEG to US dollar, which means it is basically a US Communist State (with respect to it's currency). They are also a major global exporter. If they severe the PEG, which is currently under international pressure, there is a chance that the Yuan will appreciate quickly, leading to a relatively fast depreciation of US dollar. As things develop, we shall see? IMHO Don't push the cart in front of the horse? -g-