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southern oregon | You're right about that, the US dollar situation is far from stable, and it has everything to do with the price of commodities. The economist John Williams (Shadowstats) made the interesting point in an interview several months ago that US $7 Trillion sit in liquid assets overseas. In the event of a widespread loss of faith in the dollar, those dollars could be dumped and attempted to be forced back into the US. Any hard assets would be targeted.
In fact, to some extent it's already been quietly going on. China has lightened its' dollar holdings by some 80b in the last year, diversifying into other currencies and hard assets. It would be very easy to picture China or some other large holder of dollars deciding to trade some of those questionable paper notes for US agricultural products. | |
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What's a dollar?
