05-21-2016, 08:19 AM
(05-21-2016, 07:20 AM)Kinser79 Wrote: Given the current balance of imports to exports any attempt to maintain the welfare state as it currently exists without the petrodollar in place results in hyperinflation. Once the US loses reserve status all those checks suddenly come due all at once.
As for which currency will likely replace the Dollar I expect it will be the RMB, China is already the largest trading country and the second largest economy, though the Rupee is looking pretty good because China's held it's One Child Policy a bit too long. The Chinese seem likely to grow old before they grow rich.
Given the data available this is the most likely outcome. The possibility that a gold standard of some kind may emerge can not be completely discounted. In such a system a reserve currency is not necessary. There are several decision points in the process to the outcome is not completely certain. One thing that is certain is that the American Empire is in decline.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises