7 Countries Considering Abandoning the US Dollar

[jds6958]

7 Countries Considering Abandoning the US Dollar

http://www.currencytrading.net/2007/7-countries-considering-abandoning-the-us-dollar-and-what-it-means/

[4JesusLove]

Link?

[jds6958]

oops, here

http://www.currencytrading.net/2007/7-countries-considering-abandoning-the-us-dollar-and-what-it-means/

[CelticMist]

oops, here

http://www.currencytrading.net/2007/7-countries-considering-abandoning-the-us-dollar-and-what-it-means/
I have to wonder, if these seven dump our dollar, how close will they all do it? Also, will they write of the debit we owe them? Plus, South Korea surprises me, after all we have done for that country. Makes a person go :thinking:scratch

[Issachar]

Plus, South Korea surprises me, after all we have done for that country. These countries are not going to dump the dollar to be mean. It is a matter of their own self preservation. They have to do what is good for their own populations.

As far as how close together will they do it? I suspect that once a country starts doing it on a large scale, it will be a race to dump the US dollar because the more that dump, the more the dollar goes down and they will all be trying to get out of the dollar while it still has some value left. It's the same thing that happens to certain stocks now and then ... it starts to go down for whatever reason and the holders hurry and try to sell off what they have before the price falls below what they paid for it. Of course, everyone cannot win. If there is a run on the banks (see the first half hour or so of "It's a Wonderful Life (http://video.google.com/videoplay?docid=-4867975537967299162)"), the first ones in will get their money so everyone rushes in trying to be first. Most people used to believe that if they put money in the bank that it was actually there if they wanted it. And it is so long as less than 4 or 5 percent of the depositors want it. Too much more than that and the banks just don't have it. Today, there are limits in place to try and protect against that sort of thing. i.e. if too many want cash at the same time, it will be limited how much they can get and if even more want their cash, the banks will just shut down and a "bank holiday (http://en.wikipedia.org/wiki/United_States_bank_holiday)" will be declared. The reason for this is something called "fractional reserve banking (http://www.lewrockwell.com/rothbard/frb.html)", something just as dastardly as compound interest.

Issachar

[Brick]

I have to wonder, if these seven dump our dollar, how close will they all do it? Also, will they write of the debit we owe them? Plus, South Korea surprises me, after all we have done for that country. Makes a person go :thinking:scratch

Yeah South Korea is kinda a big slap. I'm tempted to say we respond by saying we need those troops keeping North Korea from running you over elsewhere. Hope you can protect your borders.

I'd not be worried much about this except for the fact that Saudi Arabia is on this list. If they start taking other currencies for oil, which I expect to eventually happen, the dollar is doomed.

For those that don't want to follow the link the countries are:
1. Saudi Arabia
2. South Korea
3. China
4. Venezuela
5. Sudan
6. Iran
7. Russia

[ChristineMarie]

South Korea...look who is the Secretary General of the UN

[Issachar]

... (see the first half hour or so of "It's a Wonderful Life"), ... Actually, start about 51 min. and 30 seconds. :)

Issachar

[4JesusLove]

Next on the list to dump the dollar is...The US?:thinking

[Old 33]

Yeah South Korea is kinda a big slap.
Countries don't hold reserves in dollars because they are our friends. They do so because it's traditionally been a solid currency that holds its value.

These countries are all acting out of their own self interest, not because they are friends (or no longer friends) of ours.