7 Countries Consider Abandoning the US Dollar
Original post made by Anonymous on Nov 7, 2007
"Countries are growing weary of losing money on the falling dollar. Many of them want to protect their financial interests, and a number of them want to end the US oversight that comes with using the dollar. Although it's not clear how many of these countries will actually follow through on an abandonment of the dollar, it is clear that its status as a world currency is in trouble."
on Nov 7, 2007 at 12:33 pm
Much of this is political sabre-rattling, BUT the $ is underwritten by an economy that is at its lowest point (n terms of debt, personal and otherwisde) in a long time. If the money traders get a sense that they can facilitate moves out of the dollar (with an eye to getting back in, later), watch out! We may not see a permanent shift out of the dollar, but massively volatile currency markets that ebb and flow with political winds.
"Money makes the word turn round" is how the line from the "Cabaret" show tune goes. Since WWII, that "money" has been the $. Since many nations have recovered from WWII, and trade and intellectual capital flows have altered, the "money" that makes the world go round will decidedly _not_ be the $, by default.
This is going to play havoc with the American economy, and political scene. Our problems related to this new development are just about to begin.