Zimbabwe: A Story About America's Future

[clb09]

http://news.yahoo.com/s/ap/20090816/...abwe_zimdollar

A woman pays her bus fare with 3 trillion in old Zimbabwe dollars — the equivalent of 50 U.S. cents. The collector accepts the brick of neatly folded bundles of a trillion each without bothering to count the notes.

"No one seems to worry, and it works," said the woman, Lucy Denya, a Harare secretary who says she's seen police officers using old notes to board buses.

[Jeez]

Big difference being dollar is the currency of choice for rest of the world and there is no alternative except for Euro, with Europe future even more gloomier than US it is good bet either. Fyi even the Zimbabwean have turned to dollar.

[clb09]

Big difference being dollar is the currency of choice for rest of the world and there is no alternative

Sorry...but you are wrong:

[echebota]

Big difference being dollar is the currency of choice for rest of the world and there is no alternative except for Euro, with Europe future even more gloomier than US it is good bet either. Fyi even the Zimbabwean have turned to dollar.

I hate this but you are right. The recent treasury auctions confirm that even after US announced $2T deficit for this year and for the next several years. And we all know that after these several years the borrowing will not stop.

Foreign Demand for Long-Term US Securities Rises
http://www.cnbc.com/id/32447814

The problem is that as much as US financial system more and more resembles an air castle the other counties are not in much better shape with their fiat currencies. They all have fiat currencies, they all have governments running their printing presses. We have to have higher inflation in all fiat currrncies including US$, but I don't see $ collapse any time soon (even though I think US would benefit from one).

[clb09]

Remember, other countries have oil, gold and little debt.

[Jeez]

Sorry...but you are wrong:

There is simply not enough gold for that.

[clb09]

There is simply not enough gold for that.

There is plenty of Gold, Silver and Platinum to be a universal currency.

When priced in FRN Dollars it may work out to about $9000 per gram of a Gold/Silver/Platinum "basket" of metals.

You show a fiat currency brainwashing when you say "gold can never be money".

[Jeez]

There is plenty of Gold, Silver and Platinum to be a universal currency.

When priced in FRN Dollars it may work out to about $9000 per gram of a Gold/Silver/Platinum "basket" of metals.

You show a fiat currency brainwashing when you say "gold can never be money".

China,India,Japan, Rusia and emerging markets would never allow it for universal currency, cause US and Eurozone have 15% total gold ever mined. Best bet is backing certain portion of dollar with gold.

[tmosley]

Yeah, saying there isn't enough gold to back a currency is like saying there isn't enough food for everyone, therefor we should all eat dirt.