[emersonbiggins]

Hey, we can't run a country of massage parlors and fried-food shacks without cheap electronics from China...

(thanks, kunstler)

[Sgs-Cruz]

$this->bbcode_second_pass_quote('emersonbiggins', 'H')ey, we can't run a country of massage parlors and fried-food shacks without cheap electronics from China...

(thanks, kunstler)

[lakeweb]

Dollar Hegemony doesn't have a lot of life left in it.

It is like waiting for someone to yell, 'FIRE', in a crowded theater...

Best, Dan.

[Aqua]

I think its only a matter of time before you guys end up going the same way as Argentina. Can’t mind any names but I mind reading last year someone going before congress and declaring if the US government did not raise its borrowing cap then the US government will cease to exist by the late fall of last year.
Raised my doomerosity levels through the roof.

[lakeweb]

$this->bbcode_second_pass_quote('Aqua', 'I') think its only a matter of time before you guys end up going the same way as Argentina. Can’t mind any names but I mind reading last year someone going before congress and declaring if the US government did not raise its borrowing cap then the US government will cease to exist by the late fall of last year.
Raised my doomerosity levels through the roof.

[DantesPeak]

Probably POers and other similar sites are probably the only places where there is even an awareness of how the US dollar based world trade system really functions. It functions by having everyone in the world use dollars and essentially send all their savings to the US. This is not an exaggeration. Just check out the US Treasury report released this morning: http://www.treasury.gov/press/releases/js3050.htm

Foreigners sent more than $100 billion to the US in October. That's more than a $1 trillion per year. That is also all the free savings the world has. If some country, such as Iran, sold its products only in Euros or gold, less dollars would be demanded. If that practice spread, eventually the dollar would no longer be practically the only reserve currency.

The end of the US dollar regime would wreck the US economy. No nukes, bombs, threats, or embargoes would be needed. The recently discussed possible bombing of Iran would be sure to turn the world away from the US dollar, and perhaps, letting Iran proceed would have the same effect - but it may take much longer that way.

Either way, it looks like the peak of the present US dollar trade system may occur may roughly at the same time as oil reaches peak worldwide production. The peak of US production happened at the same time income per person peaked (yes it true, inflation adjusted income per working person peaked more than 30 years ago). The peak of worldwide oil production might mean that worldwide income per person has peaked, and there will be fighting and conflict from now on as living standards drop. We may be very well be in the final days of the smooth functioning of the dollar system.

[Aqua]

$this->bbcode_second_pass_quote('lakeweb', '')$this->bbcode_second_pass_quote('Aqua', 'I')f it were so simple. The problem is that most of the rest of the world holds dollars as reserves. The U.S. won't go down in isolation.

Like I said, it is like waiting for someone to yell, 'FIRE!', in a crowded theater.

Best, Dan.

[lakeweb]

$this->bbcode_second_pass_quote('DantesPeak', 'P')robably POers and other similar sites are probably the only places where there is even an awareness of how the US dollar based world trade system really functions. It functions by having everyone in the world use dollars and essentially send all their savings to the US. This is not an exaggeration. Just check out the US Treasury report released this morning: http://www.treasury.gov/press/releases/js3050.htm

[RdSnt]

$this->bbcode_second_pass_quote('DantesPeak', 'P')robably POers and other similar sites are probably the only places where there is even an awareness of how the US dollar based world trade system really functions. It functions by having everyone in the world use dollars and essentially send all their savings to the US. This is not an exaggeration. Just check out the US Treasury report released this morning: http://www.treasury.gov/press/releases/js3050.htm

Foreigners sent more than $100 billion to the US in October. That's more than a $1 trillion per year. That is also all the free savings the world has. If some country, such as Iran, sold its products only in Euros or gold, less dollars would be demanded. If that practice spread, eventually the dollar would no longer be practically the only reserve currency.

The end of the US dollar regime would wreck the US economy. No nukes, bombs, threats, or embargoes would be needed. The recently discussed possible bombing of Iran would be sure to turn the world away from the US dollar, and perhaps, letting Iran proceed would have the same effect - but it may take much longer that way.

Either way, it looks like the peak of the present US dollar trade system may occur may roughly at the same time as oil reaches peak worldwide production. The peak of US production happened at the same time income per person peaked (yes it true, inflation adjusted income per working person peaked more than 30 years ago). The peak of worldwide oil production might mean that worldwide income per person has peaked, and there will be fighting and conflict from now on as living standards drop. We may be very well be in the final days of the smooth functioning of the dollar system.

[oilluber]

$this->bbcode_second_pass_quote('Aqua', 'I') think its only a matter of time before you guys end up going the same way as Argentina. Can’t mind any names but I mind reading last year someone going before congress and declaring if the US government did not raise its borrowing cap then the US government will cease to exist by the late fall of last year.
Raised my doomerosity levels through the roof.

[Aqua]

I think that the powers that be know their ship is going down someday, hence war on terror with dissolution of civil rights under the patriot act and military conquests of oil rich nations.
Oilluber the rural parts of Ireland look like one giant Georgian housing estate now such is the extent of property speculation. When this pops we won’t be far behind you.

[aldente]

$this->bbcode_second_pass_quote('RdSnt', '
')It's ironic that we are approaching Peak Money at the same time as Peak Oil. By next year the US debt requirements will consume all available money used by the world to finance debt. That includes corporate debt.

[cube]

$this->bbcode_second_pass_quote('Aqua', 'I') think its only a matter of time before you guys end up going the same way as Argentina....

[RdSnt]

$this->bbcode_second_pass_quote('albente', '')$this->bbcode_second_pass_quote('RdSnt', '
')It's ironic that we are approaching Peak Money at the same time as Peak Oil. By next year the US debt requirements will consume all available money used by the world to finance debt. That includes corporate debt.

[Rafa]

$this->bbcode_second_pass_quote('lakeweb', 'B')ecause the IMF loaned in dollars, repayment was required in dollars.

[lakeweb]

$this->bbcode_second_pass_quote('Rafa', '')$this->bbcode_second_pass_quote('lakeweb', 'B')ecause the IMF loaned in dollars, repayment was required in dollars.

[diceman99]

I learned some interesting information about currency, fiat money and how money works on goodwill, faith and greed.

Look up the story of John Law and the first trial of a fiat currency in France.

[Falconoffury]

$this->bbcode_second_pass_quote('', 'T')he bottom line is that the US, and every citizen in it, is so far in debt there is no feasible way to recover.