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The question, I guess is not if but WHEN will it happen in the US? There has been some talk on Bloomberg about the risk for the dollar to lose it's reserve curreny status.




I feel like a lot of the situations described in that article are already happening, the value of the dollar has dropped astromically, its been weakening for years. We don't have "paper money" yet but this "recession" didn't start last summer, it's been developing for years and we'll see it change for several more until we've either made radical changes... or bad news.
Goodbye Seattle Lusty Lady, where every Miss is a Hit, and every Hit is Missed. 1985-2010.





a very interesting interview on this very subject with the author of 'Web of Debt' ...
(snip)"Daily Bell: Can you explain the genesis of the financial crisis?
Brown: Taking the long view, it's the end of a 300 year Ponzi scheme. Virtually all of our money is created by banks as loans; but banks create only the principal, not the interest necessary to pay their loans back. More is always owed back than is created in the first place, and new borrowers must continually be found to take out new loans to create the money to pay this extra interest. After 300 years, the whole world has been locked in debt, and the parasitic pyramid has run out of its food source."(snip)
(snip)Ms. Brown uses Lincoln as an example, and unfortunately, given these days of Internet revisionism, that is perhaps not an overwhelming example. Lincoln was human, too. He didn't "free" the slaves until it was politically expedient, threw a number of his political and media opponents into jail and unleashed a Carthaginian trail of blood and destruction on the South toward the end of the war that left its cities leveled. From a monetary standpoint, he was the author of "greenbacks" that the Union used to fund the war and which quickly deteriorated to a value of nullity.
Lincoln, who was certainly a great man in some ways (depending how you define greatness) provides us with only one example of how the government deals with money. But there are many others. History is littered with debased currency. It is much wiser, in our opinion to let the market deal with money - and not the government."(snip)
One reason we did not have these worries under Reagan was that his policies supported a strong dollar. As did Clinton and Rubin for the most part btw. One of G.W.'s greatest failings ( and they were many ) was failure to support the dollar. Problem is, Obama is being even worse.
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