Economic Catastrophe: Lost Faith in the U.S. Dollar

China Explores 'New' Currency Options to Replace Dollar
By Bill Glynn

Today China expressed its concerns and ideas for replacing the dollar as the underpinnings of world trade. This overture is not only a shot across our ship but could spell the beginning of the end. This is exactly what I have been saying and fear the most. This will not happen in the near term but represents the first public sign that America is losing or has lost the world's trust. This issue is the most important and potentially devastating in our history as a nation and the 300+ year capitalist experiment. Yes, I am a naysayer and full of gloom and doom these days but I speak to the real issues facing the nation - MINTING MONEY and BORROWING MONEY. It is coming home to roost! So what if China and the rest of the world seek a neutral currency to isolate any systematic risk like with the U.S. market. What if China and the world lose faith in the American economy and our nation's ability to support our debt and currency? The world's faith in our system is necessary for our economy and much of our nation to simply survive. Once this faith is lost or one nation sells off treasuries or currency, there will be a worldwide rush to get out of America's financial products. When this happens - and I am telling you it will - America will sink far below a depression; our nation will be institutionalized for its recklessness. This is the knockout blow for all of the U.S. [more...]