Quote:
Originally Posted by Craig
Of course, anything can happen, but these domesday scenarios are very silly. The collapse of the dollar would have worldwide implications, starting with china and the entire world energy market. That isn't something that is about to happen overnight. The US economy is currently at more risk from deflation than inflation (see japan). It's difficult to imagine a scenario that would take it from it's current condition to high inflation. What do these guys want the fed to do, ignore the current conditions, reduce the money supply, and drive up interest rates?
I assume that this nonsense is a response to the fed putting some cash into circulation, maybe they should all go buy gold at $1400 and see how that works over the long term (talk about bubbles).
Besides, in the type of scenario these folks are imagining (complete worldwide economic collapse), the value of my dollars would be be the least of my worries. This is nothing but fear mongering, and if you look behind it you will usually find someone trying to sell something.
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What is silly is, to think of it as a "domesday scenario". The collapse of a system would only result in the birth of a new system.
Here is where you fail to understand the subject:
It's not about the US as a Superpower, or China as such. It is about us as a population of individuals and the depriviation of real prosperity.
The FED is putting cash into circulation ever since it's creation per federal reserve act, with that manipulating economies throughout time and (more recently) global boundaries.
The FED's actual advantage is the fact, they are the inital creation of such a sytems, being the carot in the string in front of your ( and everybody elses) nose, kind of a thing and China recently opening up the gates for international investments. They are giving su what we (believe) we need, cheaper than cheap. This is how they complement eachother. At the moment.
Once they stop complementing each other and begin to oppose each other the Dollar will be utterly irrelevant.
The same way why we are being deprived of the choice to run our vehicles on CNG from domestic resources, because the OPEC would dump the Dollar in a heartbeat if we wouldn't buy their oil anymore in such volumes.