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Originally Posted by pj67coll
Would these be the same idiots that thought everything was working just fine before it all went down the ****ter a few years back?
Regarding your assumption that the world "wont dump the dollar because they are all invested in it". First off that's not so, the Chinese have already reduced their exposure to dollars for the first time in decades. Second, when the US is not able to pay the interest on it's debt history tells us that the outlook for the dollar will change real quick. As Ferguson says' "the dollars fine - until it isn't..."
- Peter.
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I'm not saying the system is perfect, I'm saying that there is very little risk of a collapse of the dollar (i.e., extreme inflation). It makes sense for china to hedge it's position on the dollar, but they are not about the "throw the baby out with the bath water." The US is in no danger of not being able to meet its debt payments, and the dollar is still one of the most stable currencies on the planet. Do you think china is going to get out of dollars and get into euros?