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Death of the USD!

The USD has been the reserve currency for a while now.

Longer than some, not as long as others. Nothing last forever...


.
 
gingermeggs said:
Looks like the rest of the world is finally getting jack of picking up the USA's economic tab.
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You really aren't very knowledgeable as to why and how the US can get away with using a fiat currency, and basically create it out of thin air at will, are you?


China and Japan don't want a rapid decline in the USD, because then all of their USD holdings would take a huge loss.

We control the IMF. We control the UN. We control NATO. We just became the #1 producer of energy in the world again. We have much of the world's gold reserves. We have the #1 economy.

I agree, fiat currency ALWAYS will fail eventually. We cannot continue forever the way we are going, but for the foreseeable future, the USD will be the world standard.
 
OCGuy said:
China and Japan don't want a rapid decline in the USD, because then all of their USD holdings would take a huge loss.
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It's called cutting their losses. Given the current trajectory of government spending, that day will come soon.
 
dmens said:
It's called cutting their losses. Given the current trajectory of government spending, that day will come soon.
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Has nothing to do with this. The International community is getting nervous about the US's willingness to Pay. This is directly related to the last 2 Debt Ceiling shenanigans.
 
sandorski said:
Has nothing to do with this. The International community is getting nervous about the US's willingness to Pay. This is directly related to the last 2 Debt Ceiling shenanigans.
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It's like talking to a wall. No matter how many times you try to explain it, their views never change.
 
sandorski said:
Has nothing to do with this. The International community is getting nervous about the US's willingness to Pay. This is directly related to the last 2 Debt Ceiling shenanigans.
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Government profligacy results in lack of money left to pay to creditors. The debt ceiling and spending are intertwined. Shocker.

OCGuy said:
They are still buying bonds......
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Well, they haven't totally bailed out yet. But preparations are being made.
 
dmens said:
Government profligacy results in lack of money left to pay to creditors. The debt ceiling and spending are intertwined. Shocker.



Well, they haven't totally bailed out yet. But preparations are being made.
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No. It can lead to a Government being unable to Pay, but that's not the problem with the $US. The problem right now is not the Debt or Deficits, it is the continued BS surrounding the Debt Ceiling and the willingness of some to cause a Default on Debt Payment. That is all.

It's like a successful Doctor raking in a very high Income making noise about stopping his Mortgage Payments. His Lender is going to get nervous.
 
sandorski said:
No. It can lead to a Government being unable to Pay, but that's not the problem with the $US. The problem right now is not the Debt or Deficits, it is the continued BS surrounding the Debt Ceiling and the willingness of some to cause a Default on Debt Payment. That is all.

It's like a successful Doctor raking in a very high Income making noise about stopping his Mortgage Payments. His Lender is going to get nervous.
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The US government soon will be unable to pay at all, given the current trend. As in, said doctor is already massively in debt and decided to fund another Ferrari. Of course the lender will get nervous.
 
Chicken Little Currency Tards at it again. The Yuan is pegged against the Dollar, and the US is China's biggest trading partner by far. They're hooked on Dollars, use them to buy everything they need in the world economy.

It's a truly devious plot to destroy the value of their own currency & the purchasing power of their chief trading partner, obviously. Just... Because. For real. Honest.

It's truly remarkable how right wing fringe whacks project their own irrationality onto others, as if US govt securities weren't so highly sought after as to provide a real negative rate of return.

Rub a few of those propaganda addled grey cells together to see if you can figure out what that means.
 
Jhhnn said:
Chicken Little Currency Tards at it again.

blah blah blah redacted for irrelevance
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Too bad the RMB has not been pegged to the USD since 2005.

Stay classy, by the way.

Also I read in the horrible right wing New York Times that the Fed bought 61% of the US government debt issued by the Treasury in 2011 and the trend has not changed. Sought after indeed.
 
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sandorski said:
Not even close.
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What's close? The bankruptcy of the federal government is inevitable if nothing changes.

That said they could raise taxes or install even more new taxes. But one wonders if the American taxpayers will accept yet more thievery from the regime.
 
dmens said:
What's close? The bankruptcy of the federal government is inevitable if nothing changes.

That said they could raise taxes or install even more new taxes. But one wonders if the American taxpayers will accept yet more thievery from the regime.
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Inevitable? Sure. Imminent? No.
 
sandorski said:
Inevitable? Sure. Imminent? No.
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That is correct. However, fixing the problem now will be far less painful than kicking the can down the road. Not that the politicians give a damn about the suffering of the American people, hence the current can kicking.

If you thought "soon" meant "imminent", then no. But considering the rate at which debt is accumulating, it will happen in my lifetime. That's soon enough.
 
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Sooner or later, the USD will loose its "superpower currency" status, but USD is not going to die, instead, it will become less dominant in how other countries trade and store their reserves. US economy is still huge at ~$15 trillion, and well diversified in high-tech/innovative segment. The currency of such country cannot just die.
 
Bitek said:
Who is "picking up our tab"? And how does that even relate to the linked story?
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A fuckton of countries whom we "export" our inflation to? The entities that loan us the money that without it our economy would immediately blow up?

We spent something like a third more than we made last year, somebody is most definately picking up a very substantial portion of our "tab".
 
dmens said:
Too bad the RMB has not been pegged to the USD since 2005.

Stay classy, by the way.
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In reality, it's still pegged-

Since 2005, the renminbi exchange rate has been allowed to float in a narrow margin around a fixed base rate determined with reference to a basket of world currencies. The Chinese government has announced that it will gradually increase the flexibility of the exchange rate. As a result of the rapid internationalization of the renminbi, it is currently the world's 8th most widely traded currency.
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http://en.wikipedia.org/wiki/Renminbi

"Float in a narrow margin" to a basket of currencies, all of which are dependent on the value of the Dollar. It's a peg by a different name. What major currency do you suppose the Dollar might decline against, anyway? The Euro? The Yen?

Also I read in the horrible right wing New York Times that the Fed bought 61% of the US government debt issued by the Treasury in 2011 and the trend has not changed. Sought after indeed.
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Heh. The FRB returns interest earned on that debt to the treasury, lends money to member banks & buys assets on the basis of the bonds it holds. Those bonds are assets to the FRB, just as they're assets to the people who bought the other 39%.

You haven't explained the attraction of a real negative rate of return for those people, at all, nor likely can you within the parameters of your belief system.

I'll give you a hint- it wasn't so Teatards could refuse to pay up when payment is due.
 
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dmens said:
What's close? The bankruptcy of the federal government is inevitable if nothing changes.

That said they could raise taxes or install even more new taxes. But one wonders if the American taxpayers will accept yet more thievery from the regime.
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No. Its technically impossible for the US to go bankrupt due to our debts unless we did something unimaginably stupid, like just not pay them. We control our own currency.

So far everything you have said is completely wrong.
 
Darwin333 said:
A fuckton of countries whom we "export" our inflation to? The entities that loan us the money that without it our economy would immediately blow up?

We spent something like a third more than we made last year, somebody is most definately picking up a very substantial portion of our "tab".
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That is buying our bonds. Not giving handouts.

Sorry, did we threaten to bomb creditors if they didn't buy us bonds?
 
dmens said:
That is correct. However, fixing the problem now will be far less painful than kicking the can down the road. Not that the politicians give a damn about the suffering of the American people, hence the current can kicking.

If you thought "soon" meant "imminent", then no. But considering the rate at which debt is accumulating, it will happen in my lifetime. That's soon enough.
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The thing is though, that the problem is being fixed already. Deficits are falling. There is absolutely no need for the Shutdown BS and it's freaking out Investors in the $US.
 
dmens said:
Too bad the RMB has not been pegged to the USD since 2005.

Stay classy, by the way.

Also I read in the horrible right wing New York Times that the Fed bought 61% of the US government debt issued by the Treasury in 2011 and the trend has not changed. Sought after indeed.
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As jhnn already covered, the "peg" is in place. It's been in place the whole time. They've allowed it to float a little in order to prevent a complete blow up of their economy.

So what if the Fed bought it? Rates would go up somewhat if they didn't but the buyers would still be there.
 
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