Comments on: Dollar as Reserve Currency http://www.believeallthings.com/3901/dollar-reserve-currency/ Thu, 04 Mar 2010 17:15:28 -0700 http://wordpress.org/?v=abc hourly 1 By: Greg http://www.believeallthings.com/3901/dollar-reserve-currency/comment-page-1/#comment-7143 Greg Sun, 11 Oct 2009 20:35:23 +0000 http://www.believeallthings.com/?p=3901#comment-7143 Mark D. - By promising more than they could deliver, U.S. politicians and others have put the country in a precarious financial position. However, I don't agree with the assessment that it's "our own fault." That's a phrase much too close to <a href="http://www.believeallthings.com/3354/collectivism" rel="nofollow">Collectivism</a> to be bandied about in a free society. Rather, it would appear that those who were elected and/or nominated to positions of responsibility had a different agenda. Since the U.S dollar was inaugurated as the world's reserve currency shortly after WWII, former <em>New York Times</em> reporter Henry Hazlitt's collection of articles and essays in <a href="http://mises.org/store/From-Bretton-Woods-to-World-Inflation-P571.aspx" rel="nofollow">From Bretton Woods to World Inflation: A Study of Causes & Consequences</a> is an important book on this subject. Mark D. – By promising more than they could deliver, U.S. politicians and others have put the country in a precarious financial position.

However, I don’t agree with the assessment that it’s “our own fault.” That’s a phrase much too close to Collectivism to be bandied about in a free society. Rather, it would appear that those who were elected and/or nominated to positions of responsibility had a different agenda.

Since the U.S dollar was inaugurated as the world’s reserve currency shortly after WWII, former New York Times reporter Henry Hazlitt’s collection of articles and essays in From Bretton Woods to World Inflation: A Study of Causes & Consequences is an important book on this subject.

]]> By: Mark D. http://www.believeallthings.com/3901/dollar-reserve-currency/comment-page-1/#comment-7138 Mark D. Sun, 11 Oct 2009 07:12:37 +0000 http://www.believeallthings.com/?p=3901#comment-7138 I would say that the stability of the dollar's value is what gives the dollar <em>de facto</em> status as the world's reserve currency. If the dollar's value keeps on dropping (raising the cost of everything traded on the world market), it will be our own fault. Our fault for pretending we can print, lend, subsidize, and borrow our way out of our problems, instead of addressing economic fundamentals. With a squishy GOP at the helm, we were in slow decline. Now we are on the highway to economic ruin. I would say that the stability of the dollar’s value is what gives the dollar de facto status as the world’s reserve currency. If the dollar’s value keeps on dropping (raising the cost of everything traded on the world market), it will be our own fault.

Our fault for pretending we can print, lend, subsidize, and borrow our way out of our problems, instead of addressing economic fundamentals. With a squishy GOP at the helm, we were in slow decline. Now we are on the highway to economic ruin.

]]> By: Greg http://www.believeallthings.com/3901/dollar-reserve-currency/comment-page-1/#comment-7135 Greg Sat, 10 Oct 2009 07:05:29 +0000 http://www.believeallthings.com/?p=3901#comment-7135 Mark D. - If or when the U.S. dollar is replaced as the world's reserve currency, it makes the possibility of a financial collapse much more likely, since its status as the "anchor currency" is propping up its value. Also, given the fact that the U.S. is the world's largest debtor nation, prices of important commodities imported to the U.S. will be significantly higher. This will likely mean that the government will find it increasingly difficult to expand and/or control the American overseas "empire" since it will be unable to finance the war machine. Mark D. – If or when the U.S. dollar is replaced as the world’s reserve currency, it makes the possibility of a financial collapse much more likely, since its status as the “anchor currency” is propping up its value. Also, given the fact that the U.S. is the world’s largest debtor nation, prices of important commodities imported to the U.S. will be significantly higher. This will likely mean that the government will find it increasingly difficult to expand and/or control the American overseas “empire” since it will be unable to finance the war machine.

]]> By: Mark D. http://www.believeallthings.com/3901/dollar-reserve-currency/comment-page-1/#comment-7115 Mark D. Fri, 09 Oct 2009 06:57:09 +0000 http://www.believeallthings.com/?p=3901#comment-7115 Whether oil is priced in dollars or Euros or dinar doesn't make that much of a difference. What makes a difference is what level of confidence foreign investors have in our fiscal and monetary policy. If they lose confidence in the stability of the dollar, due to our excessive deficits, for example, they won't buy bonds denominated in dollars any more, which will have major implications both for them (China particularly) and for us. On the other hand, minus all the inflation, perhaps it would be best if foreigners quit lending us money... Whether oil is priced in dollars or Euros or dinar doesn’t make that much of a difference. What makes a difference is what level of confidence foreign investors have in our fiscal and monetary policy. If they lose confidence in the stability of the dollar, due to our excessive deficits, for example, they won’t buy bonds denominated in dollars any more, which will have major implications both for them (China particularly) and for us.

On the other hand, minus all the inflation, perhaps it would be best if foreigners quit lending us money…

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