No other currency can effectively replace American Dollar.

Discussion in 'Economy' started by 52ndStreet, Jul 2, 2009.

  1. 52ndStreet
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    52ndStreet VIP Member

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    I must submit to you all, this recent chatter about a currency to replace the American dollar, is nothing but irresponsible chatter, and is not based in any real economic principles. What other currency would the world put its trust in ?. I can not come up
    with a currency. Not the Euro , the Yen, or the Rial. The Dollar will, and should remain the currency for international finanace and business for long into the forseable future.
    America is the only true economic powerhouse for the entire world.!!$$
     
  2. Oddball
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    Oddball BANNED Supporting Member

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    The same was said about the British Pound.

    If federal spending and Fed easy money policies aren't reined in, the USD will go the way of the Lira.
     
  3. Toro
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    Toro Diamond Member

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    Yes, you are probably correct 52nd Street. It is difficult to see what would replace the dollar, at least over the next several decades.

    Dude's premise is correct in that the US government cannot spend prolifigately forever. However, it should be noted that Sterling was the world's reserve currency for decades after it was surpassed by the US in terms of GDP, and it took two world wars for the world to finally abandon the pound after the UK was flattened and its economy devastated.
     
  4. Oddball
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    Oddball BANNED Supporting Member

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    You forgot to mention that it has also been all downhill for the Pound since then.

    30 years ago, it traded at roughly $2.50 : £1:00. Now it's down to around $1.60.

    There's what a overbearing paternalistic big gubbament is worth.
     
  5. Annie
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    Annie Diamond Member

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    Who thought CA would go bankrupt? Who thought the US government would take over Chysler, much less GM? It's happened. Get used to it. The USA that we 'know' is done.
     
  6. Toro
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    Actually, the pound has moved in a range of $1.05 and $2.45 since 1974.

    But that doesn't have much to do with sterling being replaced as the global reserve currency after WWII.
     
  7. adeel_sami
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    adeel_sami Free-Doom

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    Yes, I'm agreed with you that Dollar is not going to get replaced with any other currency(ies) or with IMF's notes, at the moment... At least the USDX (Dollar Index) is strengthening; it's irrelevant to cite the issue of replacement.
    But if it gets to 70.xx and continuously dips, then it's a worrying sign .... But it willn't be that serious to get the call of replacement unless DX won't get to under 50.xx ...


    Clarifications ??
     
  8. tigerbob
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    tigerbob Increasingly jaded.

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    Which "overbearing paternalistic big gubbament" was that?
     

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