Monday, July 02, 2007

The coming collapse of the US dollar

Here's a little something that's getting no traction in the US media.
The skew in the global financial system -- commonly called 'global imbalance' -- seems to be fast spiralling out of control.

For some time now economists have been engaged in the mother of all debates: whether the US dollar would collapse by as much as 40% when compared to other currencies (some are even betting on the US dollar going belly-up) or whether there would be an orderly devaluation -- that is, a gradual revaluation of other currencies vis-�-vis the US dollar.

In effect, the question that is confronting us is not 'whether' but 'when' and by 'how much.'

So hang onto all the dollars you can. They're always good for origami.

(read more)



Blogger David Wozney said...

A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.

7/03/2007 12:04:00 AM  
Blogger spiiderweb™ said...

I was just going with the conventional acceptance of the Federal Reserve Note's being a US dollar.

Technically a Federal Reserve Note is worth no more than a sheet of bathroom tissue unless people accept it as being more valuable.

7/03/2007 07:58:00 AM  

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