Sunday, July 4, 2010

When the U.S. dollar finally fails what would it feel like?

Max and Stacy have the answer....The Europeans and others have already had to deal with the reality of a one world currency, an experience that Americans fear.

Their one world currency experience is, of course, the U.S. dollar, and they partially yield their sovereignty to it, as we will inevitably do the same as the U.S. Dollar loses it's status as the world reserve currency. If you want this thesis explored further, you have to make the effort to listen:

It's your future....

One point I will leak out here, is that the parting of the ways at the G20 between Obama's desire for more stimulus (Keynesian inflation) and the Europeans embrace of austerity (deflation) has to do with the fact that those who don't print the core currency of the planet, obviously can't really inflate, only we can.

This also suggests that when our currency loses it's world reserve status, our ability to meaningfully inflate goes away....

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