I don’t find any religious undertones in here, but I do think it is doomsdayish. I expect the US to go through a financial revolution within the next few decades near future, but not because foreign countries no longer see value in the dollar.
It will be because the gap between the rich and poor reaches a tipping point.
Obviously we differ. I consider the author's clear exposition on the meaning and significance of fiat currency very helpful for a lay reader. People should never forget that paper currency, today, is based strictly on confidence. Anything that disturbs or hurts it means implied devaluation, even if it doesn't show up in the charts. If you use accounting language, the Goodwill of US $ has gone from a positive value to negative. That will show its impact slowly as the world's Central Banks diversify their reserve holdings and more and more international contracts are written in non US $.
indeed, the article helped me understand “fiat currency”…
while I take all apocolyptic stuff with a few healthy chunks of NaCl… I do think the vibe seems correct…
international trust in US financial market is a major issue
I must admit, I too was surprised to see the copyright notice after reading the article. The interesting thing is, my feeling regarding the article changed after seeing the notice, and that has me questioning the reason.
Most of us would probably agree that the article had some interesting points, and we all were going along with it. Heck, if one of the normal Piggingtonians pasted it, and tried to pass it off as their own, we’d all be raving now.
Are we justified on changing our viewpoint based on who wrote an article? Should we not judge an article based solely on its contents (and credible sited sources)?
Anyhoo, the article was quite good, although I do think it is a bit over the top in it’s doom&gloom prediction.
I do agree that America needs to stop relying on foreign money and should put its financial house in order, but to think that all foreign investments here are coming/have come to an end is purely fantasy.
Monetary systems from day one were based on trust, heck nothing is for certain for crying out loud. You ‘trust’ that when you take your next breath, air will actually exist! Because if not…well…you won’t be able to make your mortgage payment and some poor Scandanavian investor will lose their nest egg, LOL!
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