Stop using US dollars. Who next?

Certainly more interesting than the Russian gas deal with China but its not enough to cause a collapse in the dollar like some people seem to want.

Reply 2

OP

Original post by Rakas21

Certainly more interesting than the Russian gas deal with China but its not enough to cause a collapse in the dollar like some people seem to want.

What if all Asian countries (except Japan,Singapore,or Philippines) do the same, trading without using US dollars? Your views will change? :biggrin:

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Reply 3

Original post by skunkboy

What if all Asian countries (except Japan,Singapore,or Philippines) do the same, trading without using US dollars? Your views will change? :biggrin:

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Japan as a large economy and having done trade in dollars for a while would have a sizeable impact for things like oil.

Though I'm not sure why you'd consider it a good thing, they are our second largest trading partner.

(edited 9 years ago)

Reply 4

anarchism101

17

Doesn't do too much that wasn't already the case. China already increasingly have the power to financially hurt the US due to the amount of debt they hold. For the forseeable future, it would be a stupid move on their part to demand payment, as it would damage their economy, but the potential is there.

Reply 5

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Original post by Rakas21

Japan as a large economy and having done trade in dollars for a while would have a sizeable impact for things like oil.

Though I'm not sure why you'd consider it a good thing, they are our second largest trading partner.

The US debt surpassed 100% of GDP. So US dollars should still be used as the global reserve currency? US government failed in debt management. The world should give them the big credit for such failure? Why?

In the real world, investors or traders actually don't care about such partners. They just care about their profits or losses. It's the rule of capitalism.

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Reply 6

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Original post by anarchism101

Doesn't do too much that wasn't already the case. China already increasingly have the power to financially hurt the US due to the amount of debt they hold. For the forseeable future, it would be a stupid move on their part to demand payment, as it would damage their economy, but the potential is there.

Unfortunately, It's China's problem. But CN leaders are not stupid. Just let them deal with the problem.

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Reply 7

Original post by skunkboy

The US debt surpassed 100% of GDP. So US dollars should still be used as the global reserve currency? US government failed in debt management. The world should give them the big credit for such failure? Why?

In the real world, investors or traders actually don't care about such partners. They just care about their profits or losses. It's the rule of capitalism.

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Putting it in the hands of a dictatorship predicted to suffer population collapse will be no better in the long term.

I share your damming of US finances but they are reducing the deficit so the debt to GDP should start to fall over the next years.

Sure but with a massive amount of dollars, only large economies can really impact the dollar. And you need a large importer of something denominated in dollars.

Reply 8

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Original post by Rakas21

Putting it in the hands of a dictatorship predicted to suffer population collapse will be no better in the long term.

I share your damming of US finances but they are reducing the deficit so the debt to GDP should start to fall over the next years.

Sure but with a massive amount of dollars, only large economies can really impact the dollar. And you need a large importer of something denominated in dollars.

According to the chart below, US debt ceiling has been increasing since 1981. So It's possible US government might fail again in budget controls.

https://upload.wikimedia.org/wikipedia/commons/e/ed/US_Public_Debt_Ceiling_1981-2010.png

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Reply 9

Original post by skunkboy

According to the chart below, US debt ceiling has been increasing since 1981. So It's possible US government might fail again in budget controls.

https://upload.wikimedia.org/wikipedia/commons/e/ed/US_Public_Debt_Ceiling_1981-2010.png

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True but on the other hand they did achieve fiscal surplus under Clinton.

Reply 10

OP