On 24/01/2010 6:37 PM, nom=de=plume wrote:
wrote in message
t...
On Sun, 24 Jan 2010 15:02:26 -0500, Eisboch wrote:


What happens if the USA just says, "No"?

Just curious.

It would be one hell of a crash, and 5-10 very rough years, but then...
We'd have to get our own house in order, as no other country would want
to finance our overspending ways. Personally, I don't think it would be
all bad, but there are a lot easier ways to get our house in order. It
would be playing with fire, and you never know how burned we would get.


There would be other international consequences also. It would affect the
totality of the world financial markets, and some countries would not
recover for decades. This alone could prevent our recovery in the time-frame
you mention.

Yep. Like the cold war, MAD if someone moves wrong. Chinese want the
value of the USDs they have, but if they flood the market and crash the
USD too quick....

Look at the cost of a barrel of oil as how well the USD is doing. If
oil goes up, the USD lost value. If the barrel goes down in cost, the
USD is strong. Look at the barrel of oil as a unit of constant value
currency. A one barrel note if you will. Todays exchange rate is
$74.60 USD == $1 OIL barrel note. Hard for some to do.

That way you can gauge the currency inflation effects more accurately.
Like the theory of relativity, is the dollar going up or the cost of oil
coming down? Both are true depending where you stand.