the end of the dollar

[MrMark]

The pound in my pocket feels weaker every day. I blame Harold Wilson!

[Sysman]

All been denied, which means it must be true.

Never believe anything until it's been officially denied.

[EC4N]

I think alot of the financial problems we are witnessing take root from what happened in the 1930's when it was no longer possible for the average individual to redeem paper money for gold. It was only possible for the central banks and only if they had dollars. So in 1971 when Britain went to the US with 3bn USD in exchange for gold, the Americans thought about it and refused by tearing up the 'Bretton Woods Agreement'. Essentially the integrity of money was lost way back.

The bankers are aware the USD is collapsing and given that all paper money is pegged to the dollar, what's going to happen to world currencies when the collapse does happen? Paper money will probably get replaced with electronic money and whoever controls the banking system controls the world. End of the US as the ruling state?

[suityou01]

I think alot of the financial problems we are witnessing take root from what happened in the 1930's when it was no longer possible for the average individual to redeem paper money for gold. It was only possible for the central banks and only if they had dollars. So in 1971 when Britain went to the US with 3bn USD in exchange for gold, the Americans thought about it and refused by tearing up the 'Bretton Woods Agreement'. Essentially the integrity of money was lost way back.

The bankers are aware the USD is collapsing and given that all paper money is pegged to the dollar, what's going to happen to world currencies when the collapse does happen? Paper money will probably get replaced with electronic money and whoever controls the banking system controls the world. End of the US as the ruling state?

Dollar collapse = end of paper currency = Global Credit = New World Order

It's in the plan.

[Tarquin Farquhar]

...
The bankers are aware the USD is collapsing and given that all paper money is pegged to the dollar, what's going to happen to world currencies when the collapse does happen? Paper money will probably get replaced with electronic money and whoever controls the banking system controls the world. End of the US as the ruling state?

IMF Special Drawing Rights. The new world currency.

[SantaClaus]

The key sentence is buried in the article:

"Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018."

Therefore, although there was a knee-jerk reaction today, the length of the deadline means there are no immediate implications for the $.

[suityou01]

Maybe sooner. Looky here

Tim Geithner, the US Treasury secretary said this weekend that the US will do “everything necessary” to maintain confidence in its currency. “It is very important to the United States that we continue to have a strong dollar,” he said. “We recognise that the dollar’s important role in the system conveys special burdens and responsibilities on us and we are going to do everything necessary to make sure we sustain confidence.”

Er, so that's the dollar about fooked then.

[SantaClaus]

Maybe sooner. Looky here



Er, so that's the dollar about fooked then.

The article doesn't mention that the US owe the Chinese in excess of 700 billion dollars. Therefore, the Chinese have a vested interest in making sure the $ doesn't sink.

[threaded]

The article doesn't mention that the US owe the Chinese in excess of 700 billion dollars. Therefore, the Chinese have a vested interest in making sure the $ doesn't sink.

That is if they are greedy for dollars, but what if they want world domination more?

[OwlHoot]

People seem to forget that the Chinese and Indians have their own big problems - A huge majority of potless peasants who will want a piece of the action, and a shortage of raw materials and basic commodities, even water.

For example the water table in northern India is sinking by 12 cm per year. You can see it in satellite photos - The whole surface is literally sinking as they slurp all the water out of the rocks much faster than it can be replenished, and if/when they run out, they'll be flipped.

Maybe they will start dominating the world economy, as everyone seems to assume. But I don't think it's a foregone conclusion. It could all go tits up for them both, in an orgy of revolution and recrimination.