UN calls for new reserve currency

[Purple & Gold]

Most people saw this coming a loooong time ago

[symple19]

Right, but thier personal finances aside, American politics boils down to Red or Blue team when neither deserves so much as a shred of consideration (save for the very few exceptions).

American people need to start voting in people based on their fiscal stances, not whether they favor abortion, gay marriage or any other wedge issue.

For all of Americans strengths, our weakness is the ultimate Achilles heal...

Too easily led. A byproduct of of public indoctrin...I mean education?

Hmmm.

Well said

[MannyIsGod]

#1 How will the rest of the world do this?
#2 Why would it be disastrous for the US?

[Cant_Be_Faded]

#2 Why would it be disastrous for the US?

Manny come on

You're a great poster in this forum all things considered but sometimes I don't know if you are baiting, or being serious

Are you being serious here?


edit: since you quoted your own post, I am guessing you are serious


It would be disastrous for the U.S. because our political leaders are putting on such a successful charade, where they convince people health care reform consists of a government option, and got rights are a divisive issue, noone realizes that they spend OUR (the taxpayers) money with absolutely no regard to how much we have to give. By changing the global reserve currency from dollar, the United States abandons what is probably one of the ultimate ultimate powers a nation in human existence ever wielded: the ability to endlessly pay off its debt in its own currency.

That is why it would be disastrous. If our leaders were not all giant pieces of egotistical , then it would not be, because they would only have to look at a medicare and social security chart from the early '90's, then cut back spending. But it simply will not happen.

[2centsworth]

israel better not allow this to happen.

This made me chuckle. It only took you 8000 posts, but you did it.

[Winehole23]

CBF posts sparingly in this forum, but always comes strong. ^^^post is no exception

[MannyIsGod]

Manny come on

You're a great poster in this forum all things considered but sometimes I don't know if you are baiting, or being serious

Are you being serious here?


edit: since you quoted your own post, I am guessing you are serious


It would be disastrous for the U.S. because our political leaders are putting on such a successful charade, where they convince people health care reform consists of a government option, and got rights are a divisive issue, noone realizes that they spend OUR (the taxpayers) money with absolutely no regard to how much we have to give. By changing the global reserve currency from dollar, the United States abandons what is probably one of the ultimate ultimate powers a nation in human existence ever wielded: the ability to endlessly pay off its debt in its own currency.

That is why it would be disastrous. If our leaders were not all giant pieces of egotistical , then it would not be, because they would only have to look at a medicare and social security chart from the early '90's, then cut back spending. But it simply will not happen.

So you're telling me it would be disastrous because they would have to cut back spending? Sure, I guess if it happened overnight, but how the is the rest of the world going to do that? The United States Dollar continues to be the safest investment out of any world currency and THAT alone is what makes it the global reserve currency.

The UN can talk out of its ass all it wants but its simply an attempt to lower the amount of leverage the United States has. I'm not so naive so to think that the United States will always have this clout, but I also know its not so simple to think that some UN meeting was held to decide who the lucky country would be.

There are countries who run with larger GDP to debt ratio than the United States. We may have the largest number, but we also have the largest GDP by far and that is why we're the global reserve currency. This is nothing that is going to change overnight. The rest of the world is suffering and there aren't very many options. This is like the UN having a meeting declaring that people with cancer are unlucky and we cure them. I'm pretty sure that if they came out with that statement someone would ask, "HOW?"

In any event, even if it does happen I don't think it will be disastrous by any means. The first things to go would not be the social services we need here at home, the first thing to go would be our over bloated military. You think a country who all of a sudden has a lot less to spend is going to choose to sail carriers all over the world while every falls apart at home? Yeah ing right. It would force our hand to be smarter with everything.



its funny because I see a lot of fear in this thread and I honestly have no idea why.

[MannyIsGod]

Oct. 9 (Bloomberg) -- The dollar rose the most in two months against the yen after Federal Reserve Chairman Ben S. Bernanke said the bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.

UN meetings scare me about as much as a 2 years old with a water gun. Its a lot of bull bluster.

http://www.bloomberg.com/apps/news?p...d=a0_d_dMcAR_Q

[MannyIsGod]

Also, if they DID have the ability to do what they propose and the US economy would suffer disastrous effects why the would they do it? Anyone who thinks that the US economy alone can suffer while the rest of the world prospers must have missed what happened about a year ago.

As we go, the world goes.

[MannyIsGod]

Its kinda funny, Krugman just answered a question about this recently on his blog

The dollar’s role in the world actually looks stronger now that it did before the crisis. Why? Because our only serious rival, the euro, looks weaker. The euro zone has been fragmented in this crisis, especially the bond market, with debt of weaker European countries seriously discounted. This pushes the euro’s ability to rival the dollar back, at least for a while. And nobody else is really in the running.
That said, the benefits of owning a key global currency are much overrated. Yes, we get a little free financing because Latin Americans keep $100 bills in their safes, and the Chinese buy a lot of Treasury bills. But ultimately, the role of the dollar isn’t very important to American prosperity – when the British pound lost its international role, nobody in Britain noticed or cared except a few lost souls in Whitehall.

http://krugman.blogs.nytimes.com/200...ons/#more-4677

[Cant_Be_Faded]

So you're telling me it would be disastrous because they would have to cut back spending? Sure, I guess if it happened overnight, but how the is the rest of the world going to do that? The United States Dollar continues to be the safest investment out of any world currency and THAT alone is what makes it the global reserve currency.

The UN can talk out of its ass all it wants but its simply an attempt to lower the amount of leverage the United States has. I'm not so naive so to think that the United States will always have this clout, but I also know its not so simple to think that some UN meeting was held to decide who the lucky country would be.

There are countries who run with larger GDP to debt ratio than the United States. We may have the largest number, but we also have the largest GDP by far and that is why we're the global reserve currency. This is nothing that is going to change overnight. The rest of the world is suffering and there aren't very many options. This is like the UN having a meeting declaring that people with cancer are unlucky and we cure them. I'm pretty sure that if they came out with that statement someone would ask, "HOW?"

In any event, even if it does happen I don't think it will be disastrous by any means. The first things to go would not be the social services we need here at home, the first thing to go would be our over bloated military. You think a country who all of a sudden has a lot less to spend is going to choose to sail carriers all over the world while every falls apart at home? Yeah ing right. It would force our hand to be smarter with everything.



its funny because I see a lot of fear in this thread and I honestly have no idea why.

Dude I never once thought or intimated that the global reserve currency would change over night, it will take decades, I was just answering your number 2.

Only an idiot would believe it could happen after one meeting, especially in this year.

And honestly, I think the only way it would ever happen would be a basket currency option, one in which the US was still included.