Posted on 09/12/2012 9:19:48 PM PDT by Tolerance Sucks Rocks
With what? China is older than the US. Is China really going to risk their sons and daughters that they cannot afford to lose?
The inflation (devaluation) is coming but it is not Russia and China causing it. Their actions if real, are to protect their own economic interests. The devaluation is the unstated goal of the American government. It has been underway for some time and will continue until the debt is reduced to a manageable level.
What is coming is a gold standard. The change will probably be introduced by nations not America nor Europe. They will simply demand settlement for trade debt in gold. The International Bank of Settlements will settle the national accounts in gold and things will go on. Who? I suspect the nations will be East Of Suez........ the GCC, Maylasia, Indonesia, Singapore, maybe China and India, probably Russia.
Although the transactions will be settled on International Bank of Settlements ledgers in Switzerland, payment might actually be made in New York or London. The physical gold is merely moved from one room to another in the US Federal Reserve vault in New York.
Eventually America and Europe will revert to gold as well. There will be no real choice in the matter. It will just happen.
-——There are only two stable currencies that could replace the dollar——
Nope, there is another, better and universally accepted medium of exchange........ gold.
Currency as a medium of international trade is anomaly. Gold is the norm. World trade will revert to the norm for settlement between banks negotiating the international transactions .
The jury is out on the yuan, but the ruble has a long history of instability. Why should this time be different? Czarist bonds, anyone?
That said, our government has taken advantage of the dollar's reserve role time and time again. In fact, our government seems to like a weak dollar, because it makes the value of US wages go down, and therefore makes US manufacturing more competitive.
Wouldn't a strong dollar, weak union policy be a better way to go about that than our current weak dollar, strong union stance? Our wages are relatively high compared to the rest of the world because we carry a lot of dead weight in the form of unionism and regulation. Our workers have enough capital to be very productive, but they can't overcome that deadweight without help. A deliberately weak dollar is not the right way to provide that.
True, and both Russia and China have been acquiring large stocks of gold, I suspect to declare a gold standard for their currencies.
The effectiveness of this will be if Russia and/or China are perceived trustworthy by the rest of the world.
The US (government) has been going the wrong direction (as opposed to Russia and China) in monetary and debt policy for two decades, and is becoming perceived as untrustworty.
Should Russia and China back their currency and be accepted as trustworthy, there will be foundational changes in world economic activity.
All that is common sense, compatible with natural economic law, and not allowed, currently, in the US.
Nations can and do grow out of historic currency instability (we did), and China (very stable and very undervalued) and Russia (growing stability over the last decade and winning over the Soros-Clinton attacks) have been moving strongly in the right direction.
With any method of attack available.
Refer to the title of this thread if you need an idea.
Compared to Obama’s deficit spending....
Dollar should do just fine with no legs at all.
I wonder what would happen if Russia, China, various muzzy homo countries, and various south american communists countries all united and attacked us right now today...
Wait, wait I know!
Isreal would protect us and our gay and lesbian military would kick all their asses to kingdom come.
We are so ****ed.
Obama’s deficit spending has done more to damage the dollar than any external influences.
Yes, I know.
My point is what if our enemies decided to help us in our self destruction...
And, the will of the people being what it apparently is - after many years of amoral, godless, self-oriented and/or misguided leadership - we're not about to change that foolish course in any meaningful way until we're forced to do so.
Sadly.
Guess that’s why there are so many shops buying gold - it goes right out of the U.S. making America a poorer place.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.