Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Seems like a bunch of baloney to me. The only way for the dollar to lose its reserve status would be for our productive capacity to vanish somehow. Comet strike. Nuclear disaster. That sort of thing. As long as the US produces 22% or so of everything produced anywhere in the world, we will be A -- and most likely THE -- major economic player in the world.
I think rruff is saying if our economy and money systems were such that the USD was never a world reserve in the first place. Not that if it was somehow lost. Which I fully agree with your assessment.
I think rruff is saying if our economy and money systems were such that the USD was never a world reserve in the first place.
So it's all a counter-factual that assumes we are really Zimbabwe? I don't see the relevance in that case. The UK was in our shoes in the late 19th century. By the middle of the 20th, we had moved past them. But the time frames for such changes run long and slow. Absent some exogenous cataclysm, they occur over near-geologic time scales.
So it's all a counter-factual that assumes we are really Zimbabwe? I don't see the relevance in that case. The UK was in our shoes in the late 19th century. By the middle of the 20th, we had moved past them. But the time frames for such changes run long and slow. Absent some exogenous cataclysm, they occur over near-geologic time scales.
We don't need to be Zimbabwe, we could just be 1940's USA and stay isolated economically.
Of course it will be hard to hide WW2 under a rug somewhere...
The Fed is completely irresponsible & in all reality experimenting. Listen to Alan Greenspan's testimony where he states that he made a mistake with his entire thesis of free markets will regulate themselves and by his keeping interest too low for too long was a major contributor in the financial crisis. Not all can be blamed on the Fed, removing Glass- Steagal was probably by far one of the largest contributors to our financial instability.
Today the Fed is doing the same thing Greenspan did by keeping rates too low for too long- raise the rates and have the conviction to do what is right long term as opposed to reacting to how wall street reacts. When the economy is heating up is when rates should be raised, when the economy is cooling down then lowered. I do not know how high valuations have to get before the Fed wakes up but if what the OP posted is true, I find it funny how the last meeting Yellen mentioned a familiar tone of irrational exuberance.
The FED didn't FIX the sick global economy by jacking down interest rates which allowed everyone with collateral to get free money to survive the Global Economic Death Dance that really began in 2001 and then got worse in 2008. They only postponed it, by stealing money from future taxpayers to preserve the debt bubble today. Recessions/depressions... are necessary winter seasons in economic life cycles put there to discourage too much debt, to destroy BAD DEBT (debt which does not increase income or services), encourage cyclical SAVING, and strengthen the local currency, another cyclical necessity. Idiots at the Fed tried to outsmart God or Nature by tricking the economy out of its necessary Deflation Season and the result of this HUBRIS is still likely to be a hellish deflation down the line, one which will be made even worse by FED attempt to play God and protecting the wealth of the world.
Our economy has been dead since 2001. Only manipulation and debt spending since 2001 to create illusion of economic growth. Remember, zero interest rates = bubbles everywhere. We preserved our standard of living by stealing money from our children and grandchildren. We are a giant monster that eats its own children.
we are a whole lot less bad than we were in 2008 and you can't prove to anyone here that the feds actions are not responsible for that fact !
you can spew all the anti fed rhetoric you like , and what you THINK but the mere fact we are not on bread lines like the great depression may be the result of what they did and do .
like taking medicine when your sick , did the medicine get you better or did you get better on your own ? personally i don't care , we are a whole lot less bad and that is what counts .
We don't need to be Zimbabwe, we could just be 1940's USA and stay isolated economically. .
The US has never been economically isolated, and for the US dollar not to be used as a reserve currency, you'd need the nation to be nothing like what we actually are. Zimbabwe would work in that regard. I've not heard of anyone who ever used Zimbabwe dollars as a reserve. But given the demise of that currency, you could think of Ghana, Bolivia, or Sri Lanka as an example instead if you'd like.
we are a whole lot less bad than we were in 2008 and you can't prove to anyone here that the feds actions are not responsible for that fact !
Well, the Fed had a partner in promoting recovery until the Republicans arrived in January 2011. After that, the Fed was left to use its pop-gun monetary policy weapons while the big guns of fiscal policy suddenly fell silent. Classic case of party-before-country, and hardly the most recent one either.
i make no claims as to who got us better .quite frankly i don't give a darn scarlet . the fact is we came a long way since most of us either lost our jobs , took pay cuts or feared for our jobs and why or how is irrelevant to me . the same as when i am sick and i never know if i just got better on my own or the medicine did it .
we have no double blind placebo trials in our economy so we just don't really know . but everyone loves to credit or discredit someone or something anyway .
There's no obligation to accept reality. Reality after all may be just a construct invented by a bunch of ivory tower elites who are out of touch with mainstream America.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
