[kewp]

[quote=underdose]I’ve read that over 90% of all dollars are outside of the US borders. If all those come rushing back to our shores, the dollar destruction currently occurring from debt writedowns will not keep pace.
[/quote]

I used to make that argument as well, until I realized that amounted to about $500 billion dollars total.

Not chump change by any means, but not what I would call a money Tsunami.

[kewp]

[quote=underdose]I’ve read that over 90% of all dollars are outside of the US borders. If all those come rushing back to our shores, the dollar destruction currently occurring from debt writedowns will not keep pace.
[/quote]

I used to make that argument as well, until I realized that amounted to about $500 billion dollars total.

Not chump change by any means, but not what I would call a money Tsunami.

[kewp]

[quote=underdose]I’ve read that over 90% of all dollars are outside of the US borders. If all those come rushing back to our shores, the dollar destruction currently occurring from debt writedowns will not keep pace.
[/quote]

I used to make that argument as well, until I realized that amounted to about $500 billion dollars total.

Not chump change by any means, but not what I would call a money Tsunami.

[kewp]

[quote=underdose]I’ve read that over 90% of all dollars are outside of the US borders. If all those come rushing back to our shores, the dollar destruction currently occurring from debt writedowns will not keep pace.
[/quote]

I used to make that argument as well, until I realized that amounted to about $500 billion dollars total.

Not chump change by any means, but not what I would call a money Tsunami.

[kewp]

[quote=underdose]I’ve read that over 90% of all dollars are outside of the US borders. If all those come rushing back to our shores, the dollar destruction currently occurring from debt writedowns will not keep pace.
[/quote]

I used to make that argument as well, until I realized that amounted to about $500 billion dollars total.

Not chump change by any means, but not what I would call a money Tsunami.

[kewp]

[quote=barnaby33]
I was going to disagree with you but you are correct. Its not paying back the debt that is deflationary, its the chilling of further lending caused by default that is. thanks.[/quote]

Well, its doubly bad when its a debt default. Not only am I hesitant to lend out more dollars, I have even less dollars to lend out then before. Potentially negative dollars in a fractional reserve system, as well.

I also think there is problem when people get inflation/deflation of the money supply mixed up with price deflation. One almost always causes the other, but there are always exceptions.

[kewp]

[quote=barnaby33]
I was going to disagree with you but you are correct. Its not paying back the debt that is deflationary, its the chilling of further lending caused by default that is. thanks.[/quote]

Well, its doubly bad when its a debt default. Not only am I hesitant to lend out more dollars, I have even less dollars to lend out then before. Potentially negative dollars in a fractional reserve system, as well.

I also think there is problem when people get inflation/deflation of the money supply mixed up with price deflation. One almost always causes the other, but there are always exceptions.

[kewp]

[quote=barnaby33]
I was going to disagree with you but you are correct. Its not paying back the debt that is deflationary, its the chilling of further lending caused by default that is. thanks.[/quote]

Well, its doubly bad when its a debt default. Not only am I hesitant to lend out more dollars, I have even less dollars to lend out then before. Potentially negative dollars in a fractional reserve system, as well.

I also think there is problem when people get inflation/deflation of the money supply mixed up with price deflation. One almost always causes the other, but there are always exceptions.

[kewp]

[quote=barnaby33]
I was going to disagree with you but you are correct. Its not paying back the debt that is deflationary, its the chilling of further lending caused by default that is. thanks.[/quote]

Well, its doubly bad when its a debt default. Not only am I hesitant to lend out more dollars, I have even less dollars to lend out then before. Potentially negative dollars in a fractional reserve system, as well.

I also think there is problem when people get inflation/deflation of the money supply mixed up with price deflation. One almost always causes the other, but there are always exceptions.

[kewp]

[quote=barnaby33]
I was going to disagree with you but you are correct. Its not paying back the debt that is deflationary, its the chilling of further lending caused by default that is. thanks.[/quote]

Well, its doubly bad when its a debt default. Not only am I hesitant to lend out more dollars, I have even less dollars to lend out then before. Potentially negative dollars in a fractional reserve system, as well.

I also think there is problem when people get inflation/deflation of the money supply mixed up with price deflation. One almost always causes the other, but there are always exceptions.

[kewp]

[quote=Fearful]
They might do it solely for purposes of diversification. A trade-weighted or GDP weighted currency basket would hold only about a quarter in dollars.[/quote]

I think it would be a good thing to have a basket of currencies function as the ‘reserve’.

Would keep us all honest.

[kewp]

[quote=Fearful]
They might do it solely for purposes of diversification. A trade-weighted or GDP weighted currency basket would hold only about a quarter in dollars.[/quote]

I think it would be a good thing to have a basket of currencies function as the ‘reserve’.

Would keep us all honest.

[kewp]

[quote=Fearful]
They might do it solely for purposes of diversification. A trade-weighted or GDP weighted currency basket would hold only about a quarter in dollars.[/quote]

I think it would be a good thing to have a basket of currencies function as the ‘reserve’.

Would keep us all honest.

[kewp]

[quote=Fearful]
They might do it solely for purposes of diversification. A trade-weighted or GDP weighted currency basket would hold only about a quarter in dollars.[/quote]

I think it would be a good thing to have a basket of currencies function as the ‘reserve’.

Would keep us all honest.

[kewp]

[quote=Fearful]
They might do it solely for purposes of diversification. A trade-weighted or GDP weighted currency basket would hold only about a quarter in dollars.[/quote]

I think it would be a good thing to have a basket of currencies function as the ‘reserve’.

Would keep us all honest.

[Author]

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