What Happens when The World Market no Longer Accepts the US Dollar?

[Air&Road]

Right now all crude oil is paid for with US Dollars. With the world getting sick and tired of Quantitative Easing as the main slight of hand being used to print more money, what happens if the world stops using the Dollar and starts using another form of currency?

Everyone always discredits my links and sources, so I'll leave you guys to find your own.

[BenzDieselTuner]

then the world begins using the €uro.....except for asians, they will be using the Chinese Yuan....

[chilcutt]

Then Libya's deceased Qadhaffi will have been proven right....

[tbomachines]

We become even less competitive and/or find value in assets other than finite amounts of fossil fuels.

[P.C.]

Originally Posted by chilcutt

Then Libya's deceased Qadhaffi will have been proven right....

He knew when to vacate the dollar; but didn't know when to vacate Libya...

[Jim B.]

I've lost the link, but a financial advisor that owned a successful brokerage recently gave an online presentation called "The destruction of Obama" or similar and made some startling observations:

The national debt is over $20 trillion right now, BUT that is calculated on the current .05% interest rate; and IF the interest rate was raised to, let's say 5%, the debt would double or triple, to $40 trillion or even 60 trillion or more;

And the Federal Reserve can raise or lower the interest rate whenever it wants, and right NOW it is almost at rock bottom; a change in the interest rate would only be UP!

Even at the CURRENT rate of interest, the $20 trillion debt, the INTEREST ALONE could NOT be serviced if every US taxpaying citizen paid 100% of their income in income tax.

So how does the Government keep going?

It prints more dollars, dollars, and more dollars, which by law it can do.

This can't go on forever - eventually it will collapse. Much like the Reichmark did in Germany, where citizens in 1923 had to take a wheelbarrow to the bakery to get a single loaf of bread! One reason the Weimar Republic was doomed and Adolf Hitler came to power...

Pull a dollar bill out of your wallet, and read that language that says the bill is valid legal tender for all debts ublic and private. It does not state it may be redeemed for gold a we are not on the gold standard.

It is on the way already; confidence in the dollar - the world's currency since about 1965 (I think he said) supplanted the British pound sterling has shrunk to to half of what it was, as the de3fault world's currency....

As an example of how this works, let's say you are in Germany and wanted to buy a huge amount of crude oil from Saudi Arabgia. You have to pay ONLY in U.S.dollars - Your German currency can't be used for this purpose. You'd have to convert your Euros to dollars first, then approach the KSA to buy the oil...

So, if faith is lost in the U.S.Standard, and his thesis it already today is down by 50% in the world's confidence, it is speeding towards collapse totally.

HENCE, "The destruction of Obama is on the way".

The dollar in this country is the basis for exchange for goods and services.

When the debacle occurs, it means stores couldn't sell goods, buyers credit cards are no good anymore, nor the money, and the economy could come to a grinding halt because or way of continuing on at all...

It would be Obama's total destruction right there; nothing else would be necessary.

Far more - the USA would be plunged into darkness, when the power grid shuts off.

It is terrifying to even think about. I think those of any political stripe would agree that this could be what ruins us all.

[elchivito]

Originally Posted by Jim B.

I've lost the link, but a financial advisor that owned a successful brokerage recently gave an online presentation called "The destruction of Obama" or similar and made some startling observations:

The national debt is over $20 trillion right now, BUT that is calculated on the current .05% interest rate; and IF the interest rate was raised to, let's say 5%, the debt would double or triple, to $40 trillion or even 60 trillion or more;

And the Federal Reserve cn raise or lower the interest rate whenever it wants, and right NOW it is almost at rock bottom; a change in the interest rate would only be UP!

Even at the CURRENT rate of interest, the $20 trillion debt, the INTEREST ALONE could NOT be serviced if every US taxpaying citizen paid 100% of their income in income tax.

So how does the Government keep going?

It prints more dollars, dollars, and more dollars, which by law it can do.

This can't go on forever - eventually it will collapse. Much like the Reichmark did in Germany, where citizens in 1923 had to take a wheelbarrow to the bakery to get a single loaf of bread! One reason the Weimar Republic was doomed and Adolf Hitler came to power...

Pull a dollar bill out of your wallet, and read that language that says the bill is valid legal tender for all debts ublic and private. It does not state it may be redeemed for gold a we are not on the gold standard.

It is on the way already; confidence in the dollar - the world's currency since about 1965 (I think he said) supplanted the British pound sterling has shrunk to to half of what it was, as the de3fault world's currency....

As an example of how this works, let's say you are in Germany and wanted to buy a huge amount of crude oil from Saudi Arabgia. You have to pay ONLY in U.S.dollars - Your German currency can't be used for this purpose. You'd have to convert your Euros to dollars first, then approach the KSA to buy the oil...

So, if faith is lost in the U.S.Standard, and his thesis it already today is down by 50% in the world's confidence, it is speeding towards collapse totally.

HENCE, "The destruction of Obama is on the way".

The dollar in this country is the basis for exchange for goods and services.

When the debacle occurs, it means stores couldn't sell goods, buyers credit cards are no good anymore, nor the money, and the economy could come to a grinding halt because or way of continuing on at all...

It would be Obama's total destruction right there; nothing else would be necessary.

Far more - the USA would be plunged into darkness, when the power grid shuts off.

It is terrifying to even think about. I think those of any political stripe would agree that this could be what ruins us all.

Well that's a sunny way to start the day. Think I'll go out and kill something for dinner.

[HuskyMan]

Originally Posted by elchivito

Well that's a sunny way to start the day. Think I'll go out and kill something for dinner.

it is FAR worse than JimB's post. Most people are unwilling to pull the covers back and take a good hard look at the corpse known as the "Federal No Reserves Note" because if they did, they would come unhinged.

[barry12345]

Do you not just declare the old currancy as dead and basically worthless and start a new one at some point? Then there is no way the banks have to close and many other things to occur.

Even your deposit insurance would be covered. One new dollar paid for a thousand old ones for example and their commitments honoured. The gaurantee is I know that governements in serious financial difficulties will find a way to absorb individuals wealth. Where else can they go? The only real unknown is the time frame.


It has happened before many times in the world. There where just no other choices. One must always consider if any government with the new currancy based on whatever they choose is a possibility.

The government in power at the time wants to maintain power even if at the cost of almost everyone. They will do that in prefferance to being out of power. The only unknown is the time frame if the current behavious continue. I see little chance of them being stopped currently.

I think the time is getting closer to where we should all pay more attention to many possibilities. This based simply on now not being truly sustainable. In my opinion the financial industry as we know will take a bath as well. In fact we could all land up in the same boat.

I certainly am not smart but at the same time. If in power and caring about people and the future.I would attempt to force responsible behaviour in all quarters. The alternatives that we soon may be facing are far worse in my opinion if they occur. We are almost all living beyond what is sensible under the current conditions. Well beyond the ability of the economy to truly support. Feels like some form of shell game to me.

[HuskyMan]

Originally Posted by barry12345

The alternatives that we soon may be facing are far worse in my opinion if they occur. We are almost all living beyond what is sensible under the current conditions. Well beyond the ability of the economy to truly support. Feels like some form of shell game to me.

Feels like? it IS the world's biggest shell game. Just because I say I am a Lion doesn't make it so and just because a literal PIECE OF PAPER says, "One Dollar" don't make it so. We all need to study carefully the legal definition of the word DOLLAR. Also, study and understand the term "Federal Reserve NOTE" with emphasis on the word NOTE as in TOTE THE NOTE car lot.....get it?

[tbomachines]

Originally Posted by HuskyMan

Feels like? it IS the world's biggest shell game. Just because I say I am a Lion doesn't make it so and just because a literal PIECE OF PAPER says, "One Dollar" don't make it so. We all need to study carefully the legal definition of the word DOLLAR. Also, study and understand the term "Federal Reserve NOTE" with emphasis on the word NOTE as in TOTE THE NOTE car lot.....get it?

I think that's his point, the dollar bill has no inherent value, but rather represents assets. Unless we increase those assets, the value of the dollar is rather pointless.

[greazzer]

Actually, the world has started the slow, but sure process of not accepting the US Dollar. Our buddy Saddam Hussien stopped accepting US dollars for his country's oil and looked what happened. Iran has stopped accepting US dollars for its country's oil and look what is happening. Look at Libyia, too. There are other countries out there following the trend. Keep in mind that if Russia, for example, wanted to buy oil and it was going to be using the world's reserve currency, it would have to have US dollars for the transaction. Now, not necessary. So, that means in the big pictures that there are more US dollars out there in a sense since they are not needed for global transactions. Right now, the US is printing dollars like crazy. The US Dollar was around 70% of the world's reserve currency preceeding B.O. Now, we are getting pretty close to dipping below 60%. And, our bond rating was down graded about 2 years ago. The long list of economic predictors are out there. Depending on your political leanings, folks will blame B.O. Those who love B.O., blame Bush. In reality, if you start looking at the predictors and events, a vast majority have in fact occured during B.O.'s tenure. That then leads the discourse to the it's still Bush's fault since B.O. is doing this or that to correct Bush's errors. In reality, that is pretty much nonsense. The social agenda of redistributing wealth and buying one's way out of a global recession is disasterious. The reality is that gifts and entitlements buy votes. Always have, always will. Maybe that is why there was the campaign promises by B.O. to cut the deficit / debt by 50%. Instead, he doubled it. The list of broken campaign promises goes on and on. Look at England, the global superpower of all time. It started down a quasi-socialist agenda, e.g., free health care, and wealth redistribution, and spending themselves out of a recession and look at them now. They boast less than 5% of the world's reserve currency via the pound sterling. What it really means is when the dollar loses its king title: we can no longer just print and print dollars to buy ourselves out a problem. If we do, look out Mr. Inflation ... We've been hiding him in a closet right now. So, whoever writes the history books and assuming they take a stark, objective view will not treat B.O. with that much reverence ... rather, some really far right leaning cooks claim his real agenda is the tearing apart of the U.S. and what a better way to do it than destroy the US dollar and through the democratic process of 51% of the voting public who honestly thinks that more debt is better, more social programs are better, and the list goes on. None of this will occur in the next 3 years, but the next dope in office will get blamed. Hope it's Hillary.

[spdrun]

Originally Posted by Jim B.

This can't go on forever - eventually it will collapse. Much like the Reichmark did in Germany, where citizens in 1923 had to take a wheelbarrow to the bakery to get a single loaf of bread! One reason the Weimar Republic was doomed and Adolf Hitler came to power...

Right -- wonder if they'll use gas, lethal injection, or just a plain 'ol 9 mm shot to the back of the skull. Glad I have a second passport; the last time this happened, it didn't go so well for my family. Ben-Shalom Bernanke should know better, considering his ethnicity.

[greazzer]

Originally Posted by tbomachines

I think that's his point, the dollar bill has no inherent value, but rather represents assets. Unless we increase those assets, the value of the dollar is rather pointless.

A dollar note is actually a debt. It represents a debt owed by someone or something, owing to that owner of that dollar. That is why it's called a "note". The problem is that holding this debt instrument means less and less since the entity which owes the debt has less and less to back it up.

[tbomachines]

Originally Posted by greazzer

Actually, the world has started the slow, but sure process of not accepting the US Dollar. Our buddy Saddam Hussien stopped accepting US dollars for his country's oil and looked what happened. Iran has stopped accepting US dollars for its country's oil and look what is happening. Look at Libyia, too. There are other countries out there following the trend. Keep in mind that if Russia, for example, wanted to buy oil and it was going to be using the world's reserve currency, it would have to have US dollars for the transaction. Now, not necessary. So, that means in the big pictures that there are more US dollars out there in a sense since they are not needed for global transactions. Right now, the US is printing dollars like crazy. The US Dollar was around 70% of the world's reserve currency preceeding B.O. Now, we are getting pretty close to dipping below 60%. And, our bond rating was down graded about 2 years ago. The long list of economic predictors are out there. Depending on your political leanings, folks will blame B.O. Those who love B.O., blame Bush. In reality, if you start looking at the predictors and events, a vast majority have in fact occured during B.O.'s tenure. That then leads the discourse to the it's still Bush's fault since B.O. is doing this or that to correct Bush's errors. In reality, that is pretty much nonsense. The social agenda of redistributing wealth and buying one's way out of a global recession is disasterious. The reality is that gifts and entitlements buy votes. Always have, always will. Maybe that is why there was the campaign promises by B.O. to cut the deficit / debt by 50%. Instead, he doubled it. The list of broken campaign promises goes on and on. Look at England, the global superpower of all time. It started down a quasi-socialist agenda, e.g., free health care, and wealth redistribution, and spending themselves out of a recession and look at them now. They boast less than 5% of the world's reserve currency via the pound sterling. What it really means is when the dollar loses its king title: we can no longer just print and print dollars to buy ourselves out a problem. If we do, look out Mr. Inflation ... We've been hiding him in a closet right now. So, whoever writes the history books and assuming they take a stark, objective view will not treat B.O. with that much reverence ... rather, some really far right leaning cooks claim his real agenda is the tearing apart of the U.S. and what a better way to do it than destroy the US dollar and through the democratic process of 51% of the voting public who honestly thinks that more debt is better, more social programs are better, and the list goes on. None of this will occur in the next 3 years, but the next dope in office will get blamed. Hope it's Hillary.

Anyone who simply blames a president is an idiot.