[quote=Eugene][quote=scaredycat]reserve currency status matters, I think. i mean, isn’t part of the enormous demand for dolalrs the fact that that’s the unit business is done in? if no one did business in dolalrs, there wouldn’t be as much demand, we couldn’t print em, and we’d have a lot less money flowing throught he system. I geuss i don’t understand how you can say that status is irrelevant to the value of the dolalr.[/quote]
The demand for dollars in countries like China and Japan exists because we’re one of their biggest export markets. If they stop buying our dollars, exchange rate adjusts, their exports fall, and they’ll have mass unemployment and riots on their hands. Do they want that?[/quote]
Actually, the Chinese are steering their citizens into gold and silver to prepare for the inevitable dollar collapse so they WON’T riot and revolt.
Americans, on the other hand, are being told to stay in fiat, so Obama WILL have a revolt when the dollar collapses. China knows that a new global currency is coming to replace the dollar, and that currency WILL be backed by gold. The world will absolutely demand this in order to avert another crisis of this magnitude.
And BTW, the U.S. used to be one of China’s largest export markets. But with real unemployment at 21.6% now according to Shadow Stats, those days are long over. This is precisely one of the reasons that China is bailing on the dollar. They invested in us only so long as we were deemed useful to them, i.e. willing to buy their cheap crap. We are no longer useful to them or anyone else.
Lastly, reserve currency status DOES matter. Without this built-in demand for dollars, our currency tanks. It’s a mathematical certainty. There are simply way too many dollars sloshing around the world, but they are currently being soaked up only because dollars are needed for most trade. When the dollar is no longer required for trade, the game ends.
Sorry to break the news to you, Eugene 🙁
And hey, you speak with such confidence. Will you PLEASE take my bet?? I’m an easy target, right? I’m just a silly little gold bug. Why do you hesitate to take advantage of me if you remain so confident of the dollar’s staying power? 😉
