Starve the beast ideology of the right.

[Asclepias]

Dont panic. The world revolves around debt now. Nothing is going to happen. Worse case scenario is that they will just print more money.

The worst case scenario is not as you describe.

If the dollar loses it's status as the world's reserve currency, printing more dollars won't do shit but further devalue the dollar. What if another nation, say Russia or China backs their currency with gold or silver? That currency would then be of much greater demand and possibly unseat the dollar as the world's reserve currency. Thus forcing the US to pay it's debts in gold or silver...or convert dollars to the new reserve currency.

No other major currency can just switch to a Gold or Silver standard, that is a thing of the past. Also at this time, there is no realistic threat from another world currency of taking over the dollars status as the worlds reserve currency. There is too much corruption and manipulation in China and no other currency has the stability as the dollar or poses a threat. Our economy is run on debt, it is very different than a personal or business financial system. So many that critique the debt don't even know what it really is...

I forgot that caveat. Yes personal debt not backed by appreciating assets is a losing thing while the national debt is a winning thing.

 

[Slade3200]

Dont panic. The world revolves around debt now. Nothing is going to happen. Worse case scenario is that they will just print more money.

The worst case scenario is not as you describe.

If the dollar loses it's status as the world's reserve currency, printing more dollars won't do shit but further devalue the dollar. What if another nation, say Russia or China backs their currency with gold or silver? That currency would then be of much greater demand and possibly unseat the dollar as the world's reserve currency. Thus forcing the US to pay it's debts in gold or silver...or convert dollars to the new reserve currency.

Have you asked yourself why our currency isnt backed by gold?

No.

A typical sign of intelligence is asking exploratory questions and finding the answer. Hint. It has something to do with the nature of the federal reserve. Did you know that if you put $20 in the bank and the bank loans out that money the bank now has $40 credit as far as the Feds are concerned?

Yes, that is an example of how "new money" is made and how our economy operates on loans and debt.

 

[gipper]

Dont panic. The world revolves around debt now. Nothing is going to happen. Worse case scenario is that they will just print more money.

The worst case scenario is not as you describe.

If the dollar loses it's status as the world's reserve currency, printing more dollars won't do shit but further devalue the dollar. What if another nation, say Russia or China backs their currency with gold or silver? That currency would then be of much greater demand and possibly unseat the dollar as the world's reserve currency. Thus forcing the US to pay it's debts in gold or silver...or convert dollars to the new reserve currency.

No other major currency can just switch to a Gold or Silver standard, that is a thing of the past. Also at this time, there is no realistic threat from another world currency of taking over the dollars status as the worlds reserve currency. There is too much corruption and manipulation in China and no other currency has the stability as the dollar or poses a threat. Our economy is run on debt, it is very different than a personal or business financial system. So many that critique the debt don't even know what it really is...

I agree with much of your post, but not the first part.

Russia's national debt is only about 18% of their GDP (compare that to ours). While they have problems of corruption (like we don't) and their energy sector is a big part of their economy, making them susceptible to economic downturns when energy prices fall. (like what the USA and Saudis are doing to them now), they have the best chance of any major nation of backing their currency with precious metals. If they were to do this, investors and world banks would move their money from US to Russia.

I do not believe for one second, that using a gold or silver standard is a thing of the past. This is Keynesian thinking that allows the elites (banksters, politicians, and gov bureaucrats) to inflate/devalue our currency by printing as much as they want. There must be some constraints in allowing these elites to control our money.