The American Peso
China is looking to move away from the USD as the reserve currency of choice, and with good reason. The way that we are printing money, it is not going to hold up for long. China has stated that they would rater use the IMF's SDR (Special Drawing Rights) which is essentially a 'currency' made up of a basket of other currencies that has been in limited use since the 70's.
Basically, if China moves away from the $ as the reserve currency of choice, the US is screwed. It is basically that simple.
The long-term fall of US dominance is going to come from the vast over-spending set in motion by Bush and exaggerated by Obama:
"It took the U.S. government 191 years – from 1791 until 1982 – to run up its first trillion dollars in debt. The second and third trillions got on the scoreboard much more quickly – each in just four years.
By the time George W. Bush was inaugurated in 2001, the National Debt stood at $5.7-trillion. He ran up more debt faster than nearly all of his predecessors combined: just under $4.9-trillion.
The National Debt stood at $10.6-trillon on the day Barack Obama took office. But if his budget projections are accurate, he’ll run up nearly as much government debt in four years as President Bush did in eight. "
Some scary charts:
Dependency Ratio (the % of the population dependent on the rest of it)
Basically, if China moves away from the $ as the reserve currency of choice, the US is screwed. It is basically that simple.
The long-term fall of US dominance is going to come from the vast over-spending set in motion by Bush and exaggerated by Obama:
"It took the U.S. government 191 years – from 1791 until 1982 – to run up its first trillion dollars in debt. The second and third trillions got on the scoreboard much more quickly – each in just four years.
By the time George W. Bush was inaugurated in 2001, the National Debt stood at $5.7-trillion. He ran up more debt faster than nearly all of his predecessors combined: just under $4.9-trillion.
The National Debt stood at $10.6-trillon on the day Barack Obama took office. But if his budget projections are accurate, he’ll run up nearly as much government debt in four years as President Bush did in eight. "
Some scary charts:
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