Re: Democrats destroying America ...

George Cook wrote:
I would agree that the US doesn't want a sudden complete unpegging
because that would likely cause worldwide economy disruptions. The
resulting economic distortions could take years to settle down. Definitely not something anyone should want.


For a number of decades now, the USD has be "the" worldwide currency that all others were compared against (including oil and gold).

However, in the past decade, the Euro and Yuan have emerged as significant forces. The USA has lost its monopoly as the dominant currency. The current crop in the white house want to re-assert the USA dominance via military power. The result is the exact opposite especially since it is endebting your country.

The USA needs to learn to play peer-to-peer instead of server-client. Its currency will need to learn to adjust.

When you consider the current wave of outsourcing, if the USD were truly allowed to float, unattached to other currencies such as the Yuan, the outsourcing might not happen because the USD would fall to a level where hiring americans would cost less than outsourcing to India. And Wallmart might find that buying american would cost less than buying from china.

Politicians may be able to use statistics to paint a rosy picture of the USA economy. But if the USD were truly allowed to float without the help of the Yuan, it might drop in value significantly. This would help USA exports, reduce USA imports (hopefully), but also put upward pressure on the interest rates in the USA. IF americans refuse to adapt and continue to buy from China and Japan, then the USD would fall further and interest rates rise significantly.

The fact that the USD is artificially propped up by the Yuan and other forces is an indication that the USA is leading an unsustainable lifestyle. (at personal, corporate and government levels).

It might be a big blow to its ego, but dropping the USD significantly and really motivating americans to stop buying foreign goods would do a lot of good to the USA economy, as well as force China to grow organically as opposed to growing via exports.

With a lower USD, who knows, you might start to see TVs made in the USA again.
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