7 Countries Considering Abandoning the US Dollar (and what it means)

[Mortikhi]

It’s no secret that the dollar is on a downward spiral. Its value is dropping, and the Fed isn’t doing a whole lot to change that. As a result, a number of countries are considering a shift away from the dollar to preserve their assets. These are seven of the countries currently considering a move from the dollar, and how they’ll have an effect on its value and the US economy.
http://www.currencytrading.net/2007/7-countries-considering-abandoning-the-us-dollar-and-what-it-means/

And to think, us older Gen X'ers will get to see not 1 but 2 empires fall.

[Thurston Howell III]

Hard times are on the way!

I think this country is desparate for Ron Paul whether they know it or not.

[Eleutheros]

Hard times are on the way!

I think this song puts the exclamation point on your sentence:

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

Here is a bonus song to this effect for those who like their music a little more mellow:

http://www.youtube.com/watch?v=l4kMnMM2Fmk

[OptionsTrader]

These are warning signs of an economic iceburg that if not avoided via Ron Paul will sink the Titanic of America:

US Dollar Index:
http://i5.tinypic.com/823ynt5.png

Currency Shares Euro (FXE):
http://i17.tinypic.com/7w5cspt.gif

Gold ETF (GLD):
http://i3.tinypic.com/6q2uz5v.gif

Crude Oil:
http://i19.tinypic.com/8ak199f.png

[mordechai]

Why are we gonna bomb Iran if anyone other than Paul becomes the next President?

Same reason as Iraq. Oil and dollars.

[jon_perez]

The Fed can't really do much to strengthen the dollar, if they tighten interest rates, recession and a market crash will be the likely result.

The USD is falling not mainly because the Fed has loosened interest rates, it is falling because US productivity has not matched the apparent strength of its currency for some time now and the massive amount of US dollar holdings by China, Japan and the Middle Eastern countries is now showing its real worth and making these countries nervous.

Like Ron Paul says, the US has been "exporting inflation" for some time now, but now the true value of the currency is coming to roost. Viewed from this perspective, the Amero actually makes sense.

I've been listening to Ron Paul and am familiar with his rationales against such a move. But after researching on my own, my conclusion is that if Canada/US/Mexico don't share a common currency, the USD, left to fend for itself, will eventually seek its proper level which probably means downward some more.

Getting off the welfare state and empire building track will definitely help save the value of the USD, but this will not happen overnight and there is no way that RP, as a lone voice, will be able to pull this off. Congress and the American people have to be convinced to go with it.

RP has made it clear time and again that the US, by abandoning productivity and turning to consumer spending as a driver for its economic growth, cannot expect to maintain the strength of its currency forever. This is why it needs to count on Canada's natural resources and Mexico's labor force as a means of competing with the EU and China/Japan/Asia... hence the Amero.

Given the political realities, the Amero route is a less painful and more likely-to-happen solution, although in the long run, what RP wants to accomplish is probably a much healthier move for America (...if you believe in small government values).

Issues of sovereignty aside and taking political realities into consideration, the Amero is probably a pragmatic economic move. Considering the strength of the Canadian [petro-]currency, such a move will actually be more in favor of American interests rather than Canada's.

[Bradley in DC]

The Fed can't really do much to strengthen the dollar, if they tighten interest rates, recession and a market crash will be the likely result.

The USD is falling not mainly because the Fed has loosened interest rates, it is falling because US productivity has not matched the apparent strength of its currency for some time now and the massive amount of US dollar holdings by China, Japan and the Middle Eastern countries is now showing its real worth and making these countries nervous.

Like Ron Paul says, the US has been "exporting inflation" for some time now, but now the true value of the currency is coming to roost. Viewed from this perspective, the Amero actually makes sense.

I've been listening to Ron Paul and am familiar with his rationales against such a move. But after researching on my own, my conclusion is that if Canada/US/Mexico don't share a common currency, the USD, left to fend for itself, will eventually seek its proper level which probably means downward some more.

Getting off the welfare state and empire building track will definitely help save the value of the USD, but this will not happen overnight and there is no way that RP, as a lone voice, will be able to pull this off. Congress and the American people have to be convinced to go with it.

RP has made it clear time and again that the US, by abandoning productivity and turning to consumer spending as a driver for its economic growth, cannot expect to maintain the strength of its currency forever. This is why it needs to count on Canada's natural resources and Mexico's labor force as a means of competing with the EU and China/Japan/Asia... hence the Amero.

Given the political realities, the Amero route is a less painful and more likely-to-happen solution, although in the long run, what RP wants to accomplish is probably a much healthier move for America (...if you believe in small government values).

Issues of sovereignty aside and taking political realities into consideration, the Amero is probably a pragmatic economic move. Considering the strength of the Canadian [petro-]currency, such a move will actually be more in favor of American interests rather than Canada's.

You are either a troll or have no understanding of monetary policy. The Fed's FOMC buying of bonds with "money" it creates out of ones and zeros at its discretion is the ONLY reason for the loss of the purchasing power of the dollar. Trade, productivity, etc., all affect relative prices more than the overall price level.

Amero?! There shouldn't be "political realities" considering money--that's the MAIN point of Dr. Paul's career. If you don't get that, you have no place here. As Milton Friedman pointed out (though I disagree with him on a lot), "Inflation is always and everywhere a monetary phenomenon."

[jon_perez]

You are either a troll or have no understanding of monetary policy. The Fed's FOMC buying of bonds with "money" it creates out of ones and zeros at its discretion is the ONLY reason for the loss of the purchasing power of the dollar. I was not talking about the purchasing power of the dollar, I was clearly talking about the relative strength of the dollar versus other currencies. How can you claim to know what you are talking about and at the same time be so befuddled that you confuse the two?




Amero?! There shouldn't be "political realities" considering money--that's the MAIN point of Dr. Paul's career. If you don't get that, you have no place here.So now you're playing thought police... ? I would say it is you who has no place here.

[fsk]

The relative purchasing power of the dollar/euro and the absolute purchasing power are related.

*BOTH* the dollar and euro are unbacked fiat currencies. They are both intrinsically worthless.

Currently, central banks are selling dollars and buying euros. This makes the purchasing power of the dollar go down and the purchasing power of the euro go up.

The Federal Reserve also prints new dollars at a rate of 6%-15% per year, depending on whether you consider M2 or M3 to be the money supply measure. This directly leads to a decline in the purchasing power of the dollar. As there are more goods in the US economy, the purchasing power of the dollar goes back up. When people in foreign countries are foolish enough to hold onto dollars, the purchasing power of the dollar goes up.

Overall, new dollars are printed faster than the US economy grows. Therefore, dollars in your pocket lose ground to inflation.

The absolute purchasing power of the dollar is roughly (amount of trade that occurs in dollars) / (supply of dollars). The Federal Reserve is messing with the supply of dollars. Foreign countries are starting to refuse to trade in dollars.

IMHO, jon_perez is either a troll or a fool. I'm inclined to give him the benefit of the doubt and assume the latter.

Seriously, Ron Paul has clearly stated that he doesn't like the Federal Reserve. When you're aggressively defending the Federal Reserve, you're really out of place. I think it's time for you to either take the red pill or forget it.

It is *HARD* to accept that the mainstream presentation of the Federal Reserve is completely and utterly false. Unfortunately, you've been shafted by the mainstream media and everything you ever learned in economics courses. It's traumatic, but either accept it or stop trolling.

[jon_perez]

Seriously, Ron Paul has clearly stated that he doesn't like the Federal Reserve. When you're aggressively defending the Federal Reserve, you're really out of place.I am not "aggressively defending" the Federal Reserve. Your attempts at propaganda and double talk are, frankly, rather amateurish.

I've already stated I am agnostic about the issue and I think you are quite aware of that.

You are apparently just unable to bear someone who is not as hawkish against the Fed as you are and who is able to present coherent arguments. The nature of your rebuttals has so far been mainly composed of name-calling and the online equivalent of trying to shout people down.


It is *HARD* to accept that the mainstream presentation of the Federal Reserve is completely and utterly false.Apparently, I disagree. I was exposed to the issue initially via the conspiracy documentaries and decided to turn to more traditional historical and academic sources to listen to alternative (but not necessarily opposing) viewpoints.

[boberino]

We all know what happened to the last country that did this.

Nov. 13, 2000
http://www.time.com/time/magazine/article/0,9171,998512,00.html

[marhlfld]

I don't know if this is a place for this question, but I'm tired of searching and hope you guys can help me.

Is there anywhere I can find a detailed list of how the Feds get money, BESIDES INCOME TAXES?

If Ron Paul gets rid of the IRS, our income tax, which I know will reduce fed income/revenue, where else can the fed get revenue? Before 1913 goverment was much smaller and did not rely on income tax, but what did they rely on to fund the government? Levies, and tariffs are some I can think of, but is there a list, itemized list?

Thanks.

[boberino]

Best list I could find, so far.

http://www.afrr.us/taxes-list.html


This list does not assume to be the complete list. Let us know if we have missed any.

Federal Income Tax
Federal Unemployment Tax
Workers Compensation Tax
Social Security Tax
Medicare Tax
State Income Tax
State Unemployment Tax
School Tax

Sales Taxes (State and Local)

Real Estate Tax
Property Tax
Building Permit Tax
Well Permit Tax
Septic Permit Tax
Utility Taxes
Severence Tax

Corporate Income Tax
Accounts Receivable Tax
Privilege Tax
Inventory Tax
Food License Tax
Fuel permit tax

Inheritance Tax
Interest Expense
Capital Gains Tax
IRS Penalties
IRS Interest Charges

Liquor Tax
Luxury Taxes

Marriage License Tax
Service Charge Taxes

Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax

Vehicle Sales Tax
Vehicle License Registration Tax
Recreational Vehicle Tax
Trailer registration tax
Road Toll Booth Taxes
Toll Bridge Taxes
Toll Tunnel Taxes
Watercraft registration Tax

Gasoline Tax

Road Usage Taxes (Truckers)

Dog License Tax
Fishing License Tax
Hunting License Tax
Cigarette Tax

Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. What happened?

[marhlfld]

Ok, thanks, but I wonder what the Feds relied on before 1913? Hmmm. Wonder where I'd look for that? Think any of RP's books would have that info? Guess I'm gonna have to break down and buy a few of them, eh?

[weatherbill]

I hear china, japan, korea vietnam, etc are going to eventually go to one currecny.....africa too...... I wonder what they would be called...... the oriento dollar? or the oreo???


or for africa.....the africo dollar? or the afro?

LOL

[Minuteman]

You have to remember also Marhlf, there would still be corporate taxation. Now its doesnt generate as much revenue and individual taxation due mainly to tax incentives towards corporations to promote productivity.

THe 3 years following 9/11 was a prime example of these incentives.