How Much Longer Will the Dollar be the Reserve Currency?

Mises Institute ^ | 10/12/2013 | Patrick Barron

[RKBA Democrat]

Keep in mind we’re really in the realm of hypotheticals here. If the dollar goes down with a THUD, then I don’t think any fiat currency will be all that popular for a few decades. Precious metals or other hard assets will be used for savings. But for short term transactions, the yuan is a fair bet to be a currency of choice.

[familyop]

"The dollar is very susceptible to losing its vaunted reserve currency position by the first major trading country that stops inflating its currency."

Well, then, maybe we should continue to inflate. We wouldn't want the U.S.A. to stop using its own currency as the reserve currency.

;-D

[RKBA Democrat]

I prefer your plan B as well. I just don’t thinks it’s going to be on the list of menu choices. In which case plan C: doing what’s necessary to protect you and yours is probably the most prudent avenue to pursue.

I can’t remember who said it , but I think the adage “the best way to help the poor is not to become poor” is operative here.

[familyop]

More seriously, BTW, the USD will continue to inflate as long as the manufacturing base on U.S. soil (different from “U.S.-based” manufacturing) is inadequate. The current economic problem is a result of the debt problem, and the debt problem is partly a result of trade imbalances (and in other part, a result of excessive government spending). The lack of manufacturing is a result of mostly zoning laws/ordinances against new, small manufacturing starts in rural areas (lack of new blood in the business).

[Cringing Negativism Network]

Well I can say that American conservatives will decide what will happen about America.

For too long, we have been outsourcing everything.

For an entire generation in fact. Entire factories, upon factories, upon factories have been built in communist China, which the Chinese own by the way, for an (interest) in the resulting goods.

America has been getting shafted bigtime in this, and we have done nothing.

Now we’re at a point of saying enough.

I say bring back American factories.

We tried this mess. All it did was made China very very powerful. And a few Americans wealthy.

Bring back American factories to America.

Now.

[familyop]

Many months ago, fund managers released some word in e-mails to clients about the yuan trading in the Chicago Exchange.

[familyop]

"Make unions illegal or optional and the manufacuring would come back like a boomerrang."

We'll more likely see the establishment of government unions such as those used to enforce slavery in the Soviet Union and currently in China. Global bosses are quite connected with governments. They've been collaborators with communist regimes for decades and are now about to put the finishing touches on a regime of communist slavery in a starving U.S.A. They don't oppose big government. Big government keeps the slaves in line. They simply control big government.

Have fun. Enjoy the slide.

[Cringing Negativism Network]

I disagree with this.

We need to even out our trade balance, and we need to start with our (huge) and growing inbalance with China.

Trade with China made sense 20 years ago. Made sense to a point even 10 years ago.

Now we need to bring factories back here.

Now.

[familyop]

Oh, I agree with you on the need to increase manufacturing in the U.S.A. I don't believe the big bosses will do it, though. Here are some links that you might be interested in.

1,000 Foxconn iPad workers trash dorms in riot against guards
http://www.freerepublic.com/focus/chat/2892677/posts

In China, Human Costs Are Built Into an iPad
http://www.freerepublic.com/focus/news/2838131/posts

iPhone assembler Foxconn closes factory after brawl involving 2,000
http://www.freerepublic.com/focus/news/2935445/posts

Underage, Underpaid Workers, Sexually Predatory Guards at Troubled Chinese Microsoft Supplier
http://www.freerepublic.com/focus/f-news/2494036/posts

Should You Feel Guilty Owning an iPhone?
http://www.freerepublic.com/focus/chat/2521010/posts

What Apple says about the State of the Union
http://www.cbsnews.com/8301-505124_162-57365775/what-apple-says-about-the-state-of-the-union/

[familyop]

The worldly folks behind manufacturing now will bring more of it back here, when working conditions can be like those in China, Bangladesh, etc. Much larger numbers of other Americans will start new, small manufacturing operations, when it is legal for slaves to do so (re. local commie zoning laws/ordinances, etc.).

[Cringing Negativism Network]

Thanks.

We need, we really need, to enact defensive trade tariffs.

Just saying.

[Doulos1]

True, so true.
God help us.