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The Dollar Era is Nearly Over

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While alert to an annual with a MIT economics assistant today on Tech Ticker, I was afraid by how he answered the afterward question, Is America headed bottomward a agnate aisle as Greece?

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Professor Simon Johnson said absolutely "Absolutely not".

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I couldn't disagree more. Why would a economics assistant from a celebrated university acknowledgment this catechism like that? He said it won't appear because America's debt is denominated in dollars that we control, Simon notes, clashing Greece's fate that's angry to the European Union.

Saudi Gold and The Dollar Era is Nearly Over
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On the apparent this makes sense; about that is if the dollar alike exists as the assets bill of the world. He either in abnegation or absolutely oblivious.

You may be adage to yourself "the dollars never activity away". I saythat all indicators say its already headed that way.

The Independent appear as afresh as aftermost year of abstruse affairs Gulf Arabs were planning - forth with China, Russia, Japan, and France - to end dollar affairs for oil, affective instead to a bassinet of currencies including the Japanese yen and Chinese yuan, the euro, gold, and a new, unified bill planned for nations in the Gulf Co-Operation Council, including Saudi Arabia, Abu Dhabi, Kuwait, and Qatar.

In addition, The Financial Times appear China had proposed replacing the US dollar as the world's arch bill with a new all-embracing assets currency, possibly in the anatomy of appropriate cartoon rights (SDRs), a assemblage of annual acclimated by the all-embracing Monetary Fund.

As China, Japan, the Saudis andthe added creditors to the United States (and authority accumulation quantities of our debt)finally amount out that the dollar is abandoned (as all authorization money eventually becomes)they will appetite to dump their dollars and appeal a new assets bill (likely a common currency) which in due time will abort additionally like all cardboard money does.

Where will that leave the United States? So abounding say that its the aggressive ability and bread-and-butter ability that makes the United States so great. These assertions are alone partially correct.

The capital acumen is the cachet of the US dollar as the assets bill of the apple (it was fabricated that in 1971 afterwards the aftermost vestiges of the gold accepted disappeared.

Without the assets bill cachet of thedollar worldwide, we will get to a point area we are in a agnate arena acreage as anybody else.

I don't apperceive absolutely what it'll be like if the dollar collapses, but we can attending at contempo and earlier examples of bill crashes in added countries and it's not pretty.

We absolutely charge to get a anchor on all spending, calm and foreign, stop creating so abounding dollars out of attenuate air and alive aural our means.

Unfortunately, its not attractive good.

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