Reply #26: reserve currency status

[sweetheart]

The problem is that the dollar is a reserve currency, and as it drops,
it losese its status. This is a long term thing, as though your textbook
economics are correct, the loss of reserve currency status means that
the holders of a tremendous amount of dollar assetts, will begin to
liquidate, which will further undermine the dollar.

You could say india has done well when the rupee was devalued from
14 per dollar to 45 or so today. Yet is following the 3rd world
path to power the way to empower the world's largest economy? Likely no.

America has held reserve currency status for a very long time now, and
with this collapse in value, bush has indeed pulled of a stealth
default, screwing people all over the world who have invested in
the US. One person might default on a credit card, but a nation state
is not so easily forgiven. During our lifetimes, after this bush
default, never again will the US economy or dollar have the influence
it once had.

When people elect an incompetent, expect incompetence.