Is anyone aware of any studies or estimates that have been made on the effect of those trillions of dollars around the world, coming back home to the US, in the event of the dollar no longer being the de fact international currency (say, if oil were to be priced in euros, etc.)? Does anyone have any idea how low the value of the dollar would be against the euro?
You look at what happened when the pound sterling stopped being the world's reserve currency.
To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process. Rabbi Lapin: "Let's make bricks!" Stephan Kinsella: "Say you and I both want to make a German chocolate cake."
You read Age of Inflation and about the Weimar Republic.
Daniel, I suppose we can go back to Britain's economic history in the 1900s. Are you suggesting the 1920s and 1930s as when the pound stopped being the world's reserve currency? When it went off the gold standard (1931?) conventional wisdom is that it lost some 20% of its value. I gotta say that I would expect a heck of a lot more than 20% for the US dollar, although its decline as the world's reserve currency (if it happens) very well might be gradual, and not take place all on one day.
I was wondering if someone had actually crunched any numbers, on how many dollars might be sent back home to the US, and again, what impact that would have on its value relative to the euro, which seems to be the only currency in position right now to unseat the dollar.
Tried to quote Daniel's repy in this post but for some reason I couldn't insert both his quote and my reply--at least I couldn't ever see both in the preview. Oh well.
I hope the effect is that many Americans will stop being so arrogant and violent.
Pride is all they got left.
liberty student:I hope the effect is that many Americans will stop being so arrogant and violent.
Or they could just come up with something, other than themselves, to blame. Like greedy capitalists or terrorists.