Is the U.S. going to collapse economically? need financial advice

[KrazyHorse]

It would seem to be more stable than Dollars alone

Stable relative to what?

[Darius871]

Not yet, but likely will be before too long.

Just in the last week I read about France, China, and Russia calling for a new world currency. The list of such countries is about two dozen long.

The Dollar is no longer Russia's primary reserve (Euro is, I believe). The Dollar was reduced from ~60% of its reserves to ~40%.

China has shifted away from U.S. Bonds by some degree.

One of the monstrous bailout bills appropriated a ton of money to the IMF for use with SDRs, which is poised to be the new 'World Reserve'.

Soros and other 'movers and shakers' have stated that the Dollar's days are numbered. There is a lot of evidence which points in that direction.

So what? Suppose tomorrow an international treaty is signed transforming SDR's into a uniform reserve currency, let's say the "Terro." How do you leap from that event to the USD being "worthless"? Presumably any transition regime would attach exchange rates from specific currencies to the Terro, would it not? What kind of conceivable treaty would, for instance, exchange 0.02 Yen per Terro, 0.04 Rupees per Terro, 2.8 Euros per Terro, 0.52 Riyals per Terro, 0.06 Rubles per Terro, 0.34 Yuan per Terro, etc. etc. etc., but at the same time exchange 0.000001 USD per Terro? Why should I worry that any such regime would be proposed? Why should I worry that any such regime, if proposed, would be ratified by allies and adversaries alike without ratification by the U.S., when the USD share of total worldwide foreign exchange reserves still exceeds 60%? Why would its holders voluntarily declare their own reserves worthless against the Terro? I'm genuinely curious.

[HalfLotus]

The IMF's track record isn't very good, particularly with third world countries which are basically locked into very long-term debt obligations and have had their wealth taken by SAPs and other IMF/World Bank shenanigans. For these reason I would be concerned about the IMF managing the world currency.

Further, the IMF is in tune with the 'de-industrialization' and 'demand destruction' programs (see Brzezinski's Between two Ages); and these are not pleasant scenarios. Brzezinski is a very close adviser and mentor to the one and only Obama, and has close ties to international banking interestests.

Re: acceptance of a 'world reserve' by the U.S., Geithner is on record stating that he would support such a thing. The IMF is a creation of western banking interests, so I'm pretty sure western powers would be on-board with them - pending relatively minor political considerations.

[Darius871]

The IMF's track record isn't very good, particularly with third world countries which are basically locked into very long-term debt obligations and have had their wealth taken by SAPs and other IMF/World Bank shenanigans. For these reason I would be concerned about the IMF managing the world currency.

Further, the IMF is in tune with the 'de-industrialization' and 'demand destruction' programs (see Brzezinski's Between two Ages); and these are not pleasant scenarios. Brzezinski is a very close adviser and mentor to the one and only Obama, and has close ties to international banking interestests.

Re: acceptance of a 'world reserve' by the U.S., Geithner is on record stating that he would support such a thing. The IMF is a creation of western banking interests, so I'm pretty sure western powers would be on-board with them - pending relatively minor political considerations.

Supposing hypothetically that I agreed with 100% of the above, what does it have to do with whether the USD will be worthless?

[HalfLotus]

Countries are shifting their reserves toward SDRs and other currencies, and Dollar value is dropping for this reason (among others). I expect this to continue and to accelerate over time.

[Kuciwalker]

I'm genuinely curious.

You really like this phrase when talking to morons, don't you.

[Darius871]

I'm genuinely curious.

You really like this phrase when talking to morons, don't you.

Yes, it's a purely scientific curiosity, like observing behavioral patterns at the zoo.

[KrazyHorse]

Seriously, this thread is hilarious.

What's really pathetic is that with a couple of months of integrated full-time study of econ and finance I'm already vastly better informed about these subjects than everybody here except our econ PhDs.

And in terms of pure mathematical finance I'd go so far as to say that I'm the Poly expert.

[notyoueither]

Whoa there, son. You're rapidly running out of options for hats.

[KrazyHorse]

physicist = swiss army knife

And even for physicists I'm considered a bit of a jack of all trades.

[KrazyHorse]

I wish that randomturn guy that GP refers to occasionally was still around...

I'd ask him what modules he'd want me to add to quantlib to make myself look awesome on my resume...

[Drake Tungsten]

Whoa there, son. You're rapidly running out of options for hats.

His statement was accurate.

[notyoueither]

Whoa there, son. You're rapidly running out of options for hats.

His statement was accurate.

And didn't say much.

[zakubandit]

Support of a world currency? A step in the right direction for the NWO and the wrong direction for free people everywhere. Guess by the time our kids have kids it won't matter either way, corpo-nations will rule the Earth with an iron fist, turning freedom into something you pay for, not get for...free.

[Riesstiu IV]

We needs to stop our monies from escaping teh Americas.