Why are more and more countries dumping the dollar and just what does it mean ? ?

I understand that one of the greatest benefit of having the USD as a world standard currency is that it helps the US service its debt buy having such a demand for its dollar that every other country needs them in order to do large % of there international trade .

I am also of the understanding that back during the oil crises of the 70's the US made a deal with oil producing nations to buy US treasury bonds with a percent of the money they made from oil trade and in return the US would buy all there oil from those countries .

I can only see bad things happening to the US economy and there ability to make payments in order to service there debt in the coming future based on the assumption that the USD is dumped as " the worlds currency "

If the USD is dumped and the market becomes flooded with dollars that are no longer needed or wanted just what would that mean ? Would that create a hyper inflation as never seen before in the USA or would we see an interest rate in the high twenties ?

As we see Europe merging to form a " super state " will this lead to Europe telling the US that her troops are no longer needed on her soil ? How would such a transfer of troops effect the current economical situation ?

Given , the US is what , 60 percent of the worlds economy ? Its clear that the world can't simply allow the US economy slip into turmoil . But on the other hand , just what have any of these countries done to prop up the dollar ? .... Which leads me to the whole reason I started this thread ...... Why are countries wanting to get away from the dollar as the " worlds currency " ?

Is it simply a matter of it's not being seen as a stable enough currency to do world trading anymore ? Or is it more a reflection of the US's debt load ?

Any info that any of you can share on this matter would be much appreciated

world is fed up with looting and raping of countries by genocidal usa and under leadership of ever great Russia and China , they have decided to dump dollar , if USA dares to threaten russia , russia will turn USA in glowing radioactive crater for next 1000 years and yeah russia has scalar and hpm weapons to protect itself from american nuclear assualt

[edit on 12-10-2009 by sadchild01]

Originally posted by sadchild01
world is fed up with looting and raping of countries by genocidal usa and under leadership of ever great Russia and China , they have decided to dump dollar , if USA dares to threaten russia , russia will turn USA in glowing radioactive crater for next 1000 years and yeah russia has scalar and hpm weapons to protect itself from american nuclear assualt

[edit on 12-10-2009 by sadchild01]

LOL Russia defending China to the point of a nuclear holocaust?
the world would condem Russia so bad, to the point of no incoming or outgoing flights. even their own people would retaliate against their own russian govt.



why say such things on this board? You have no idea what you are talking about.

Go back to playing Risk. Alteast there are no sanctions.

Originally posted by Max_TO

I understand that one of the greatest benefit of having the USD as a world standard currency is that it helps the US service its debt buy having such a demand for its dollar that every other country needs them in order to do large % of there international trade .

I am also of the understanding that back during the oil crises of the 70's the US made a deal with oil producing nations to buy US treasury bonds with a percent of the money they made from oil trade and in return the US would buy all there oil from those countries .

I can only see bad things happening to the US economy and there ability to make payments in order to service there debt in the coming future based on the assumption that the USD is dumped as " the worlds currency "

If the USD is dumped and the market becomes flooded with dollars that are no longer needed or wanted just what would that mean ? Would that create a hyper inflation as never seen before in the USA or would we see an interest rate in the high twenties ?

As we see Europe merging to form a " super state " will this lead to Europe telling the US that her troops are no longer needed on her soil ? How would such a transfer of troops effect the current economical situation ?

Given , the US is what , 60 percent of the worlds economy ? Its clear that the world can't simply allow the US economy slip into turmoil . But on the other hand , just what have any of these countries done to prop up the dollar ? .... Which leads me to the whole reason I started this thread ...... Why are countries wanting to get away from the dollar as the " worlds currency " ?

Is it simply a matter of it's not being seen as a stable enough currency to do world trading anymore ? Or is it more a reflection of the US's debt load ?

Any info that any of you can share on this matter would be much appreciated

Whilst I genuinely sympathise for Americans going through this as it's a terrible thing for anyone anywhere to lose their homes and jobs and so on, I'm not exactly sure what Americans expect. Ironically, whilst so many Americans appear to be superficially terrified of a one world currency, they have had no qualms about the fact that dollar has been the global currency for so long. As you point out yourself, America has benefited massively from the current arrangement and it has propped up the standard of living that so many Americans have boasted about.

It was inevitable that America wasn't going to hold on this forever.

In answer to the question as to 'why are countries wanting to get away from the dollar as the " worlds currency"'? I think it's a mixture of several things: opportunism and 'smart' business as well a metaphorical or symbolic stance.

Whilst all the world's economies are interlinked to varying degrees and if America goes down, the rest of the world willfeel it, competing economies are doing their best to cushion that impact and if it means distancing themselves from America in various ways and look elsewhere for the better deal on the horizon, then they'll do it.

Even if many Americans can't see it or understand it, it was inevitable there would eventually be a backlash against America - even if there was a collective sigh of relief and a bit of dancing when Obama got elected all across the world - and even if countries aren't directly involved in that backlash, they are aware of it and are conscious of where and how new lines are being drawn and 'what's in' and 'what's out'.

As the dollar drops, it will become more difficult to unload and convert large sums of US dollars to other forms of currency and commodities.

Yup, as the dollar become less desirable, hyper-inflation will be one result. But, there are other ways for foreign investors to unload dollars for value, so long as they are still good in this country. So, what will also happen as a result of the declining value of the dollar and failing US corporations is that these foreigners will begin buying US based assets, such as those failing corporations, particularly those that hold valuable patents.

As the dollar declines, pieces of America will be sold off by those here in this country that now have few dollars, and when all is said and done, the US dollar will be worthless except for here, and there will be few assets left in this country. It won't be long before most everyone here will be working for corporations own by China, Russia, and them OPEC nations.

Now, don't worry, this does not mean doom, but what is does do is set the stage for the roll-out of a kind of new world order. While the dollar may become valueless, YOU, a citizen/slave, still have value .. and these new owners of America will eventually find something to use you all for, ha. A couple years from now Americans will be working in factories making cheap products for China in a kind of fair turnaround play on ya'll. Neat, huh?!

Well it's business. And like all businesses it's better to jump out of the sinking ship before you go down with it.

Originally posted by sadchild01
... if USA dares to threaten russia , russia will turn USA in glowing radioactive crater for next 1000 years and yeah russia has scalar and hpm weapons to protect itself from american nuclear assualt

All that multi-billion investment in scalar and hpm weapons came to nothing, coz Obama got Nobel Peace Prize, so he can't threaten any nation, otherwise he would have to return the medal -- and the 10 million Swedish crowns that go with it. Michelle would turn his life into living hell if she found out that those 10 mil was gone from her debit card.

I don't think there is any "punishment" scenario going on here, this isn't vindictive. The power of the warped American banking system has done a lot for other nations as well as the US.
The people who make such decisions are interested in money and profit, they have no moral obligations to consider and wouldn't act in a negative way toward the US in direct risk to their own financial stability or profit.

The reason this is happening is because everyone ignored the inevitable for so long, because the drink was still flowing and the music was still playing at the massive party we were all having.
No one wanted to consider the clean-up at two in the morning.
Then, someone American guy threw up in the bathroom, party over.
The lights came up and we suddenly saw all the mess.

There is simply no other option than to deal with it. And part of this clean-up is going to be to consider how safe the house is before another party starts.

People are waking up to just how fragile the $ is because of the party. Right now, it isn't very stable, and any adjustments and potential fixes have a direct bearing on American financial systems, and then, in turn, our own again. If there is a way to remove the massive risk of the $ collapsing from affecting other nations, all nations would take it.

I think that's what we're doing now. We're testing the waters to see just what damage would be done TO US by moving away from the $ entirely.

I can see it happening, and I think it should have happened sooner.
But, I'm one of those who truly believes in protectionism. We should be defending our own financial systems, not worrying about a global one.

This is comparable to a war scenario, and in that case we would be defending ourselves first and assisting our allies second. I hope that is what our elected leaders are doing beneath the surface.

What will happen to the US economy when it becomes obvious that she can't pay the interest payments on her debt , never mind actually paying off the principle ?

Originally posted by Max_TO
What will happen to the US economy when it becomes obvious that she can't pay the interest payments on her debt , never mind actually paying off the principle ?

You'll always have something to sell off. Once the businesses will have gone, you'll still be standing on an enormous patch of land full of all kinds of resources and opportunities. I honestly think a lot of that will go.

This is one of the real reasons that W invaded Iraq - Saddam Hussein was pushing for OPEC to switch from the Dollar to the Euro and that would have had dire consequences for America!

reply to post by ShadoMan


Well that only seemed to have only delayed the matter as we see more and more countries deciding to make the change , or at least lobbying the UN for the need of a new " global currency "



[edit on 12-10-2009 by Max_TO]

Ive worked with quite a few people from all over the world,a nd what upsets them the sot, is us military operations and bases in their countrys. That is what makes 'us; look bad. As for dumping the dollar, just seems to me, for whatever reason, we cannot maufature much of anuythign anymore, it seems. IF no one is buying our our prudcuts, and having em shipped..thiers nothinig to support then! I doubt the economy is going to get better in the long run. It requires and takes massive manufacturing to create jobs* and for it to grow..which is not the case today. theirs more and more layoffs, bank closing, bailouts for the big evil ones, and zero businesses bieng created, thus making jobs* No one is buying our products.... thats the bottom line