[Carlhole]

$this->bbcode_second_pass_quote('Maddog78', 'T')his now the 3rd thread on this. Clearly a big deal, especially on PO.

[Sixstrings]

$this->bbcode_second_pass_quote('Carlhole', '')$this->bbcode_second_pass_quote('Maddog78', 'T')his now the 3rd thread on this. Clearly a big deal, especially on PO.

[Maddog78]

$this->bbcode_second_pass_quote('Carlhole', '')$this->bbcode_second_pass_quote('Maddog78', 'T')his now the 3rd thread on this. Clearly a big deal, especially on PO.

[Plantagenet]

The US is going to have to "hyperinflate" the dollar to try to get out from under the rapidly growing national debt. The deficit is going up at a rate FOUR TIMES faster now then it did under Bush.

If oil continued to be priced in dollars, dollar hyperinflation would wreck havoc on the international oil markets. I wouldn't be surprised if the transition away from the dollar occurred in the next year or two, as the hyperinflation is coming fast if Obama continues the explosion in deficit spending.

[TheAntiDoomer]

HA, getting ally hyped up over drama queen drudge. hilarious.

[Jotapay]

$this->bbcode_second_pass_quote('TheAntiDoomer', 'H')A, getting ally hyped up over drama queen drudge. hilarious.

$this->bbcode_second_pass_quote('Jotapay', '')$this->bbcode_second_pass_quote('TheAntiDoomer', 'H')A, getting ally hyped up over drama queen drudge. hilarious.

[Jotapay]

Bah. You beat me to it. You have quite the hover-fu for replies.

I find "squick" more tasteful.

[TheAntiDoomer]

I dont know why you got upset in the first place. It is true 95% of drudge sirens turn out to be dribble.

[threadbear]

$this->bbcode_second_pass_quote('Sixstrings', '
')
If the plan is for the whole world to shun the dollar, then when we buy oil we're competing against a much stronger basket of currencies (which we won't be a part of). Wouldn't this mean a doubling of what Americans pay for oil?

[SeaGypsy]

"The deadine ...2018" seems wildly optimistic to me. There are a number of factors which could bring implementation forward in weeks or months.
This incongruous date seems to be designed to not frighten the USA.
Once the basket is sorted out there will be plenty of excuses to bring the date forward.

[cipi604]

Even for Weimar Republic hyperinflation took few years to speed up. It takes time, but the trend is obvious.
And don't forget people , we've peaked, and this move to take USA out of the game helps everyone.

[SeaGypsy]

Didn't the Brits and Yanks 'win' the second world war? Wasn't the spoils diveed up to reflect this? How many have died in the Middle East fighting over lines imposed on them by the Brits immediately after WW2?
Has the world changed enough that the fools game set up to profit the winners of WW2 has ended it's usefullness simultaneously as the charade has been exposed? Seems there were only 2 reasons the world put up with US/Brit economic hegemoney for 60 years. 1st/ they won the war. 2nd/ they boomed seemingly miraculously.
Now/ the charade of military dominace is being exposed daily in 2 wars.
The charade of economic godliness is shattered on the ground.

[americandream]

This makes no sense. Are Walmart setting up in China?

[Mesuge]

Hm, there are basically only three important issues:

1/ Time frame?
2/ What the U.S. actors will (not) do about it?
3/ Who is on board of the transition plan?

---

1/ Time frame?
As mentioned before, the prospect of fast implementation is quity risky for all players/actors, for instance in reaction to an attempt to hyperinflate out of it by the U.S., this will obviously create instant global havoc. And in that case you better have very strong back up plan B and C ready.

2/ What the U.S. actors will (not) do about it?
Basically only three major sub options here, firstly (2.1) the U.S. will just muddle through on its way downstairs to a status of former empire aka ending as "punished" regional power, proviso the public will do nothing as well the PTB.

Secondly (2.2), a genuine populist (or bought by PTBs) will take over the public opinion, takes millitary and fights the "not negotiable style of living" hard, and not just neocon style wimpy way but hardcore bioweapons/nukes/starwars-lite/civilian infrustructure damage.

Third option (2.3), this actually might be precursor to the 2.2 scenario, the U.S. based power brokers will gurantee security of its millitary/nukes to the world in exchange of some "rescue package" by the new global powers just to run the country on some barely manageble level. Think of Yeltsin's early 1990s Russia, or ancient Egypt, .., that's fairly common scenario in the history in terms of collapsed empires/failed states. This could however present itself as the last proverbial drop in the bucket and storm the formely docile U.S. public, so then fastforward into some form of that violent scenario 2.2.

3/ Who is on board of the transition plan?
There will be a price to pay for "Johnnies-come-lately" like the U.K. which became lately so overdependent on its City aka the global financial hub based on trading $ and related security schemes/crap for the empire, as much that it just got totaly under their skin and into their blood. So, they might end up with very bad deal when finally "allowed to join" the Euro or some global basket of currencies. However, suprises are possible, quite theoretically the U.K. could turn on its heel and even lead this transition with force, but that would be sudden shut down of US-UK relationships and that's unlikely, the personal/cultural bonds are still there and they would rather fall trying maitain the facade of former glory than realistically give up and hail to their new global masters EU+BRIC.

-
Please understand that the above mentioned rational actors may not necessarily be just nation states, but also the nation-less global top percentil/PTB who basically run many of them.

[Rod_Cloutier]

Wouldn't a dropping dollar mean that American made goods would become affordable again? Before the Euro, France aggressively kept its currency debased so that other countries would buy their exports.

As a Canadian I would love to take the kids to Disney world, and Universal studios and some of the other major theme parks, not to mention vacationing in Hawaii during our long winters. However with our Canadian dollar worth only $0.92 cents to the American dollar it is cost prohibitive to travel or stay in the US.

I think that getting people to 'buy American' again, especially in terms of foreign countries buying American exports would certain generate jobs in the US and a return of standing to the American industrial base. Travel and tourism certainly have a lot to gain from a depreciated US dollar.

[TheAntiDoomer]

http://uk.biz.yahoo.com/06102009/325/oi ... g-dlr.html


Oil states say no talks on replacing dlr

$this->bbcode_second_pass_quote('', 'B')ig oil producing nations denied on Tuesday a newspaper report that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in trading oil.

The U.S. dollar eased in response to the report, which was written by The Independent's Middle East correspondent Robert Fisk and cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong.

[dorlomin]

$this->bbcode_second_pass_quote('SeaGypsy', 'D')idn't the Brits and Yanks 'win' the second world war? Wasn't the spoils diveed up to reflect this? How many have died in the Middle East fighting over lines imposed on them by the Brits immediately after WW2?

[Roy]

Great comments in this thread.

I can't say that I blame them.

Our deficit spending and immense debt have to have an effect on the USD eventually. The petro-dollar system is in effect a tax on the rest of the world. They might be figuring it out and deciding to do something about it.

Stock futures? UP today! Euro markets up ~1.5%. Gold up ~$18 overnight. BAU will continue for now.

When the petrodollar ceases to exist, it will be a quick transition from a stable situation stateside, to a worthless (or nearly so) currency. And all the fun that goes with it.

My $2 (let me begin the devaluation now )

[Arsenal]

$this->bbcode_second_pass_quote('TheAntiDoomer', '
')Oil states say no talks on replacing dlr