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To: givemELL
In conclusion, the USA may now be the world’s only remaining superpower, but it can only sustain its hegemony and fund its domestic and military expenditures if it forces the rest of the world to use US petrodollars.

The US is the engine of the world's economy. If it falters, so does the rest of the world. We also have the largest ecnomy and the only one that can absorb huge amounts of capital. Moving away from the dollar is a risky propostion, especially if you invest it in Russian or Chinese currency.

The dollar will begin to weaken as its international support and devotion wanes, or even sinks. As the dollar weakens, the price in dollars for everything the USA imports will skyrocket, adding a powerful inflationary hit to the US economy. Along with the impending US recession, that will further weaken the dollar and likely its decline, or outright collapse, will feed on itself.

That becomes a two edged sword. First, the US is the world's biggest consumer. What happens to the exports of China, Inida, and the EU? Who will buy them? Second, a declining dollar makes US exports more attractive and competitive. The US economy is $11.7 trillion, about twice that of number 2 Japan. Russia's economy is $581 billion, just below Brazil and just above the Netherlands.

86 posted on 08/01/2007 6:44:47 AM PDT by kabar
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To: kabar

Good info...the CFR (council on foreign relations) sponsored Robt. Pastor, the guy who came up with the concept of the NAU, and made the case for a new currency, the Amero...plenty of info on the topic to be found, even the original CFR sponsorship paper is available..the US takes a lot of countries and econonomies with it if it does recede..I do not think the North American Unionists care about that...for them it is a buying opportunity.


88 posted on 08/01/2007 6:55:50 AM PDT by givemELL (New AlQaeda tactics)
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