[visualops]

Why do I get the feeling that anti-American jerks the world over are trying their best to drag this country down?

[WackySam]

Lots-o-bad stuff’s going to happen to us, but the crash of the dollar isn’t one of them.

[shielagolden]

its coming

[nickcarraway]

This assumes other economies and currencies are less damaged.

[<1/1,000,000th%]

Looks like Willem isn’t meeting his goals for selling Euros.

[Tallguy]

"The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the US materially weakened financially, economically, politically and morally," he said. "Even the most hard-nosed, Guantanamo Bay-indifferent potential foreign investor in the US must recognise that its financial system has collapsed."

I guess we know where this guy is coming from. Sounds like he has a political beef with the US as much as an economic complaint.

I'd like to ask this professor exactly where does he think that these foreign investments are going to go? If you liquidate your US investments, you must be buying something that you perceive to be better, right? As long as there is no single alternative, then the US slide (assuming he's right about that) will be a long one, but not unreversible.

[Nathan Zachary]

I think “Professor” Buiter is engaging in a little bit of ‘wishful thinking’. Need I remind him that it is the UK that has been failing to sell bonds to prop up all their socialist debt?, NOT the USA?

[MahatmaGandu]

Buy silver, people, and buy it now.

[VaBthang4]

A Euronobody says something about America.

[LonePalm]

What currency is the dollar going to collapse against?

You can only have a currency collapse vis-a-vis one or more other currencies.

Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)

[Hostage]

One can guess as much as desired that a dump of dollar backed assets will take place.

As the professor says ‘old habits die hard’ because the dollar is still viewed as a safe haven.

And that is the key,’safe haven’. In order for the dollar to be dumped, there must be a new safe haven.

And there is no alternative safe haven anywhere because it is the US Market that drives international commerce.

The only way for an alternative safe haven to emerge is for the US economy to collapse completely while another economy emerges as a leader. The Japanese have a shot but they too have problems.

So the bottom line is the professor is blowing smoke and doing nothing more than reflecting exasperation.