Would the END of the US Dollar as the World's Reserve Currency be a GOOD THING or a BAD THING for u?
 

Speaking from your own personal financial perspective, will the looming end of the US' role as the world's standard currency be a good thing or a bad thing for you? Is it merely a question of whether you live inside or outside the US or does it require more sophisticated logic and understanding?

Here's the prognosis on the US dollar based on people that control $8 TRILLION in assets http://www.ft.com/cms/s/0/23183a78-a...#axzz1QW9XA6fD

Doesn't matter if it's a bad thing. With the way the idiots in the Federal Government have run monetary policy over the last 40 years, it's inevitable.



:(


.

unreadable without registration

As it stands now the US dollar being so weak is actually very good for me because to have design work, coding ect done is cheap when using people who accept US dollars compared to somebody who only accepts Euros or GBP so yeah it would affect me in a pretty big way if suddenly people started to drop the US dollar for Euro or GBP

unfortunately, it will lead to WW3 and possible end of times... :2 cents:

however, i am ready for that.. lets just get this shit over with..

we need a catastrophic event to start over and make things right..

i would like to be around for the outcome, but don't really care if i wasn't..





.

It's worth the 30 seconds of registration :thumbsup

I'd say digital crypo-currency, but most of you's too scared that uncle sam might spank you, taking it up in the ass seems preferred option to many on here.

One of the other things which has been in the UK news is China backing the UK and the Euro and i hope that is is not the first steps for China edging towards the Euro as a global standard currency instead of the US dollar. I know this is more about trade than currency

This is what I see as worrying


China has been aiming for some time to diversify out of US Treasury bonds due to worries about the American fiscal position. But the euro debt crisis has also raised concerns about the eurozone. Thus, the recent thrust of Chinese policy has been to use foreign exchange reserves to finance investments by Chinese companies overseas instead of acquiring government debt. This change helps to promote the country's multinational corporations, which is the goal of the "going global" policy launched in 2000, the linchpin of China's growth strategy.

http://www.guardian.co.uk/commentisf...ese-investment

Chinese Premier backing the euro and the UK


Well little that I didn't already understand to be his views. But, even so, it was impressive to hear from his lips an unambiguous statement that China's massive trade surplus is a contributor to global economic and financial instability - and that it is unsustainable.

Of course, as of now, China continues to generate enormous surpluses, which means that the dangerous division of the world between heavily indebted economies like the UK and US, and those with huge savings, such as China and Germany, persists.

But if words matter, then his declaration that it is a priority to boost consumption by the Chinese, relative to their massive saving and investment, will help to bring balance to the global economy, thereby reducing the risks of an early reprise of the 2007/8 global financial crisis

http://www.bbc.co.uk/news/business-13921701

You had all better hope, that no matter what happens, the world does NOT switch over to some global version of the Euro. (a single world currency). That would be utter and complete disaster. There would be no way to account for varying cultures and productivity by the free market devaluation of individual currencies and personally I think it would lead to an economic and social disaster that would then usher in a world-wide central government, inevitably, which would be even LESS representative of any kind of democratic system than the overly strong, overly large governments are now. It's sounds a bit apocolyptic perhaps, and not in our lifetimes, but it's still a very real threat down the road IMHO.




.

the end comes sooner than many think. It's just the end of the world as we know it. One of two things will happen, china will run the face of the earth, leave the rest in the dark like 1800's america and take all our resources behind closed gates orrrr just reform our governments when the natural disasters and world food shortage take a stronghold on all of our modern countries.

Brilliant catch, man. Makes sense now. The Chinese are VERY crafty. Great way to RIDE the dollar's continuing erosion to FURTHER heights. Talk about building assets with greater long term rewards in mind. I strongly suspect 2025 to 2050 will be the timespan where China's world dominance will be acknowledged by the world.

As for the dollar as reserve currency, there's talk of reinstalling GOLD as the gloabl benchmark.

this has always been the problem with China..

they think and govern in terms of thousands of years where as the US has always planned according to current times..

if the US lost its stature as the global currency, we would manipulate the markets 1000 times worse then China currently does and this is what would lead to WW3... :2 cents:





.

Return to the gold standard. Period.

they should make all money worthless and nobody can own more than 100 acres of land. Then make marijuana the official currency of the world. Hoarding cash/weed would just make it rot and worthless :)

Sorry, but the Euro isn't really an option because it's the same shit as with the US Dollar.

it would be bad for everyone, worldwide, except those responsible for doing so and a few investors perhaps..

is there even enough gold in the world to do this?

Chances are they will go to the first currency that goes back to the gold standard. It's the only true way to prevent a government from devaluing the dollar. Chance are it will be the pound, but only if the Brits get their act together.

I don't see a problem with ditching the worthless dollar, that's backed by nothing for bitcoin, which is backed by more than nothing, zero fraud protection, and ran by some of the most hilariously inept people on the face of the earth.

At the moment in its infant ways it's showing to be very durable. Major exchange hacked, user db leaked, exchange down for a week; every one thought it will be major crash and sell-off. In reality it took small dip and once exchange opened again it is now back on track.
Earlier it gains wider adaption, better it will be as another alternative and vehicle for trade. If something big to happen metals would be more difficult to trade with on day to day basis especially in large distances; metals are expensive to transport and store. bitcoin is secure and efficient transit network for any amount of value. it is digital gold standard (newly born).


Surely going back to having currency backed by gold seems nice. But how it is realistically achievable on global level? You know damn well if gold won't be injected in the currency itself but only virtually represent some gold value - history will repeat itself again and we will end up in the same situation we were and are now at in the future.

nothing is backed by nothing... what is gold backed with? - faith that you can sell it tomorrow at least for the same value you bought it yesterday, nothing more.

china is manwin

I think it'd be a bad thing for everyone, honestly.

what will change dollar, my mother?

a VERY BAD THING

gold has an inherent value because it is usefull. Money has no inherent value other than as paper.

Gold is solid value storing container so to say, proven historically therefor you have this inherent value attached to it. Faith in gold is backed historically and that is true. But faith is not constant. IF something comes that is cheaper to store, transit and utilize than gold as a value container and more secure, faith and therefore price of gold will go down. In that case it will still have utility in other industries but not in financial sector - wouldn't you agree?

In the past rocks were used as money, now bank vaults don't store rocks. Why? something more efficient like gold has replaced rocks, same thing can and will happen to gold. you can't send 1 oz of gold in payment through fiber-optic channels without added huge costs and delays in time to get from point A to point B.

How is it useful? You can't eat it, sleep under it, use it for fuel, etc.

Does that fact that it shines or is pretty make it useful?



.

the only real use and value gold has is jewelry and electronics. gold as monetary vehicle in 21 century is like using rocks in prehistoric ages - very inefficient and expensive to store and transit.

Agree 100%. Smokey is comparing it to money, so maybe he has more to say...



.

u serious ? the thing you are typing on right now uses gold.. it can't use paper bills.
you can't eat a wheel , sleep under it or use it for fuel , but wheels are usefull
no the fact it is used for many things makes it usefull

useful
- of practical use, as for doing work; producing material results; supplying common needs.

the argument was why gold is usefull not if it is the best tool to use as a monetary storage device

Smokey, you make a good point

Now, lets discuss usefulness of money and I don't mean paper or whatever, I mean as a unit of trade and exchange.

Good monetary unit must be durable, divisible, non-inflationary, un-counterfeit-able, easily transferable.
Am I missing anything?

Fiat money don't fit this description well, They are durable but not long-lasting, they are inflatable and can be counterfeited.
Gold fits more into good monetary unit. Except its not very divisible, you can't transact well with atom amounts of gold safely without risk of loosing these atoms, its definitely un-counterfeit-able. BUT in modern world although it's transferable it adds additional costs and time delays. How can you make instant payments with gold in large distances - impossible.

We are going digital.

LOL at this thread, go back to gold. May as well bring back prohibition too.

Imagine an entire economy run on $1000. everyone has to use a share of the currency, because the currency is set to the $1000 worth of gold in fort knox. When the people create goods & services, that exceed the $1000 available in the economy, what happens? Refer to the great depression.

The Fed is the best we got. What we need is for our wealthy classes to step out of their bubbles. & realize globalism is working only for themselves. Only a catastophic depression that kills the bubble class will accomplish this.

Maybe we should go back to gold! :thumbsup

If true global economic collapse happened, gold will have regional value like before. The value of gold today will fall to a trade value. An area that can exchange it for something useful, will have value in gold. And area that can't exchange it for anything more useful than another rock, will have other things that are more valuable. Water, can easily be more valuable then gold.

Outside of that... China is as f'ed as America, in pretty much the same ways other than labor costs, which is now growing in China which has already created social costs from the Gov. They are a direct reflection of our Economy, an extension of our labor force. It's already becoming too expensive to do business with them, and with no social backing to fight off poverty, they'll fall into a pit of hell without us.

the most logical thing to replace out broken monetary system is with a pump and dump scheme run the by russian business network.

No, the original argument of thread was "lets go back to gold backed currency".
I posted counterarguments in my above posts.

Your usefulness of gold does not convince me that gold is optimal in today's monetary system, not gold itself and not currency that is virtually backed by gold.

as a unit of exchange paper money and gold aren't very good, i was just pointing out paper has little inherent value whereas gold has a much greater inherent value.

Digital is what we are using now, the digital is backed by paper which is backed by nothing.

I think people are suggesting have the digital backed by a solid item such as gold , not gold as an exchange item itself.

I say use marijuana as a solid item.. years ago i had a brainstorm about a bitcoin like service called "virtual apples" ,shoulda jumped on it.

i meant my argument not thread title , i should have been more specific. My post was not in support of using gold, just suggesting why it was better than paper backed by nothing.
I don't think gold is optimal either. We are already using digital but it is backed by nothing. In essence we are arguing the same point.

But just for sake of argument, if you don't believe gold is optimal then you must have something that is better than gold as an item to back a currency on.

Or you believe currency needs no backing.

In a nutshell you are saying the best way to crack an egg is to not have a shell. My point is if your egg has no shell it is something entirely different and cannot be compared. Your idea of an egg without a shell is a much much better way of getting to the egg, but isn't an optimal way to crack an egg :)

does it all matter as long as there's still pussy

yes, we are using digital now. the problem is not that it's even backed by nothing, beacuse even gold is backed by nothing else than faith in my view. the problem currently our digital is still fiat, I have very little trust in the system that can inflate zeros at the end at it's will, creating more value by devaluing current value =)
that is why I see bitcoins as an elegant solution which I don't mind being adopted on country/global levels. it can't be inflated and it is cost effective value transport system.

digital backed by gold - I can't see it happening and being an 'honest' system. it will be manipulated same way as fiat money or what we see with 'virtual' gold/silver markets - where you buy piece of paper which says you own some amount of gold but in reality that same gold was sold to 100s more people at the same time.

The problem isn't the USD, the EUR or some new world currency. The problem are legal tender laws. The problem is the fact that the government forces you to use a certain type of currency instead of letting the market do its work.

bitcoin ftw! :1orglaugh:1orglaugh

paper can't be trusted. backed by gold - how? are there any other options?

Wow, a theoretical discussion of the value of one virtual resource store over another on GFY, and the best bit is that there are some fantastically diverse yet relevant points.

Obviously the scholars amongst you will know that paper currency was introduced into France in the 1700's by a dubious Scot in what was little more than an elaborate parlour trick.

The said scoundrel convinced the King of France (the global super power of the day) to give him the rights to print paper promissory notes that would be used as currency instead of metal coin and plate. (gold and silver) in return he would be responsible for repayment of the enormous debt that the crown had incurred fighting wars and building palaces. The whole scheme would be backed by the original mlm/ponzi scheme, the South Sea Company.

It was a fantastic fraud which ended in disaster, the French revolution, and bloody war in Europe for decades.

So paper money started as a scam. As did the whole insurance industry. Do your research, the history of paper money as a virtual store of resource is absolutely fascinating.

Sorry if that takes the thread of on a tangent, but check out The South Sea Company, also othe Dutch bulb bubble, you will see that history is just a nasty cycle of disaster, the worrying thing is our current 7years of plenty are long overdue for crash, real crash....

If not gold, which would you prefer as a "store of value"? Interestingly enough, Ron Paul mentioned that if OIL was priced in terms of Gold, its value would be relatively stable (using the the 70s pricing of oil as a benchmark). Agree?

If the dollar defaults, so will the eruo and rimbei. The currencies with be devalued and interest rates will increase dramatically from today's very low rates. Gold will devalue as well along with the currencies. Expect a 20% contraction in the economy and 20% unemployment. The recovery should take about a year before the first signs of improvement are observed. The eventual recovery to "normal" will take about 10 years.

Look to Argentina in about 2000 as an example.

if it continues like this the Chinese will use the printed Dollars for toilet paper. No offense to the US peeps here but its really starting to get out of balance.

Wait a minute! $5 Submissions did yet another blind cut and paste? Who woulda thunk it?

50 stores and measures of value