The demise of the dollar

[WoodPeckr]

Celente The Dollar is Finished

http://www.youtube.com/watch?v=zWw6oowo3wA



The problems we face today will not be solved by the minds that created them

 

[onthebottom]

What comes to my mind is the fact that China owns a huge portion of the US deficit. It's around 10 trillion dollars if I remember correctly. If this move to another currency(-ies) happens, dollar will lose its ground against, say, Euro. Chinese holdings will sink accordingly, relative to Euro, if they don't get exchanged to Euro. It's getting very complicated at this point and I wouldn't dare to predict the outcome.

10 Trillion more like 800B http://www.treas.gov/tic/mfh.txt

Still a big number - second is Japan at 724 and UK at 220

OTB

 

[onthebottom]

What comes to my mind is the fact that China owns a huge portion of the US deficit. It's around 10 trillion dollars if I remember correctly. If this move to another currency(-ies) happens, dollar will lose its ground against, say, Euro. Chinese holdings will sink accordingly, relative to Euro, if they don't get exchanged to Euro. It's getting very complicated at this point and I wouldn't dare to predict the outcome.

Yes, when you owe a little to the bank the bank owns you, when you owe a lot to the bank you own the bank.....

There really isn't any way for the Chinese and Japanese to unwind their holdings without devaluing them.... now they may still decide to do that, but at great cost and to what end?

OTB

 

[onthebottom]

Brazil has no oil and is completely energy self sufficient (ethenol).

Two advantages: sugar cane as the ethanol crop, poor economy (fewer people burning oil/fuel), if the US per capita GDP was $10,000 I don't think we'd be importing oil either....

OTB

 

[Rockslinger]

Two advantages: sugar cane as the ethanol crop, poor economy (fewer people burning oil/fuel),

Actually, there is a 3rd advantage. Warm weather, no need for central heating.

 

[WoodPeckr]

Two advantages: sugar cane as the ethanol crop, poor economy (fewer people burning oil/fuel), if the US per capita GDP was $10,000 I don't think we'd be importing oil either....

OTB

The Race to the Bottom may take care of that!....



The problems we face today will not be solved by the minds that created them