drieuxster (drieuxster) wrote,
drieuxster
drieuxster

The Century of Moving Out of the Dollar.

I should thank 'that andrew' for his kind kvetch about how it will take a century, or so, to move out of the AmericanDollar as the Global Currency. Hence that we should not worry that much about the talk out of china. Since it will take them a while to bring on the Renminbi as at least a Regional, if not full on Global Currency.

Also in play here is whether the idea of having any one national currency doubling as a Global Currency a gooder idea to being with. Also, is there the alternative of having regional currencies, as has been tossed about.... With three or four currencies making a global basket of currencies.

Either way, when does the clock start on this century of transition?

Who in 1812 would have been arguing that by 1918 the Pound Sterling would have finished it's run? Also embedded in that comparison is the rise of the PetroChemicals over merely coal, as the primary energy source.

Also in the bag of questions to wonder about - How much of the global dominance of the american dollar rests upon the blithe optimism of the america that signed onto the Bretton Woods system. Based upon it's ethical positions set up during WWII. The alternative prospect, that it was the rise of american 'Nuclear Mercantilism', in which america's vast military technology was the 'true lynchpin' of economics - since, Bretton Woods was a negotiated political solution. Rather than the more mystical 'let the market decide' model.

Which of course gets a bit messy, since in some respect, the idea of stepping away from Bretton Woods to let the market decide is really not a bad idea. Since it allows economic values to be compared. If we were to allow that to happen. But since the Dollar has been tied to Oil, since Nixon, there has been that completely grotesque anomaly distorting the value of the dollar.

That we survived the horrors of the Reagan Era with it's "deficits do not matter" meme. Which is so funny now, given that we find Dick On Dick warfare, where the old dick cheney who advocated that reagan taught us that deficits do not matter, is now attacking the dick cheney who advocates that the horror of the Obamanation is that they have run up these devicits. Depending upon which story really happened with TARP under Dubya, it is possible that this Dick On Dick warfare has been going on for a while...

Clearly IF the nationalists flag wavers were to opt out of having the american dollar as the global currency, then the up side would be that we could reposition the american economy based upon merely economic issues. Assuing that we could also get them to work with the idea that maybe resource wars were, well, not a smart way to let the market decide.

So this remains one of my pet messy bits.....

I so wish that it were as easy I would like it to be.
Tags: economics
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