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**yovbQVpD** · 01-17-2012, 08:13 PM

This is why it would take a long time for the US Dollar to fail, because all of the competing fiat has to fail first, including the Euro, the Japanese Yen, and the British Pound.

You have to understand, the USD can strengthen even as it loses domestic purchasing power. It has no paper rival.

But Sparky, therein lies the rub:

The dollar's value comes from it's performance verses the other currencies it's weighed against - EUR, JPY, GBP, CAD, CHF and SEK. I think the EUR is almost 50% or so.

So as the EUR gets printed to oblivion $10 TRILLION Liquidity Injection Coming? , the US FED is stuck between a rock and a hard place - either the dollar gains tremendously versus the Euro, which will cause tremendous havok, or it inflates along side it and both devalue at a steady pace.

Either way, IMO, we're screwed.

This is not including any potential black swans such as BRICS discontinuing the petrodollar and major war breaks out.

Something is going to have to give - this cannot last for more than a few years longer at this pace.

01-17-2012, 08:13 PM	#8
yovbQVpD Join Date Oct 2005 Posts 401 Senior Member	This is why it would take a long time for the US Dollar to fail, because all of the competing fiat has to fail first, including the Euro, the Japanese Yen, and the British Pound. You have to understand, the USD can strengthen even as it loses domestic purchasing power. It has no paper rival. But Sparky, therein lies the rub: The dollar's value comes from it's performance verses the other currencies it's weighed against - EUR, JPY, GBP, CAD, CHF and SEK. I think the EUR is almost 50% or so. So as the EUR gets printed to oblivion $10 TRILLION Liquidity Injection Coming? , the US FED is stuck between a rock and a hard place - either the dollar gains tremendously versus the Euro, which will cause tremendous havok, or it inflates along side it and both devalue at a steady pace. Either way, IMO, we're screwed. This is not including any potential black swans such as BRICS discontinuing the petrodollar and major war breaks out. Something is going to have to give - this cannot last for more than a few years longer at this pace.
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