Once infrastructure is well developed, living standards do not drop by much. Look at UK or even poor European countries like Portugal. Portuguese are still living off the infrastructure they built in the 1600's when they were dominant sea traders. People who write of Americans ( I'm not referring to the subsidized farm states and the hill billy south) are being too pessimistic.
Gulf In Talks on Replacing US$ For Oil: Report By REUTERS Published: October 5, 2009 http://www.nytimes.com/reuters/2009/10/05/business/business-us-oil-dollar.html?_r=1 Filed at 9:40 p.m. ET SYDNEY (Reuters) - Britain's The Independent newspaper on Tuesday reported that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in the trading of oil. The U.S. dollar eased after the report, written by Middle East correspondent Robert Fisk and monitored on The Independent's Web site. It cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong. Fisk said the proposal was for trade in crude oil to move to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. "Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars," said the report. It added that France had also been involved in the talks. The Independent said U.S. authorities were aware that the meetings had taken place but had not discovered the details and were "sure to fight this international cabal." The issue of shifting oil trade away from the U.S. dollar has been raised occasionally in recent years, but analysts and experts say it is unlikely to occur any time soon. "I don't think we will see much concrete actions coming out of such discussions because even when the dollar is weak, it doesn't mean that commodities are undervalued," said David Moore, commodities analyst at the Commonwealth Bank of Australia. "In fact, when the dollar weakens, commodities prices tend to increase by a higher ratio." However, Iran began settling most of its crude oil exports in non-dollar currencies several years ago, primarily the euro, but the actual price for its oil is still set in dollar terms. (Reporting by Wayne Cole; Editing by Mark Bendeich)
What's to say that the US will sit by and let things fold so nicely in place, to allow for the $ to lose reserve status?
A basket that includes an unpegged currency, the yuan, and a "planned" currency? C'mon folks, this is classic sabre rattling, nothing more...
It takes a little while for the people to read it and see it quickly spread like wildfire on several different boards before they react. People dont buy gold/silver just because of 1 article. They gotta see it all over. Heres the spike
It is a momentous event, but hardly a surprise. When people fooling around with dollar value, this is the result.
Who says everyone is peachy after America gets destroyed? Its about cutting losses. America wants to suck the entire world into a financial black hole to debase itself from its obligations (foreign and domestic), and keep American banks flush with cash from a new bubble. Looks like Japan, China, Russia and France are telegraphing they won't go down with Titanic. Bernacke, Geitner and Zoilick are calling for the end of reserve status. Get your head out of your ass. That's fucking HUGE. American Leaders plan to ruin the Dollar. Our trade partners now must chose between the lessor of two evils. Lose a huge export market. Or lose their entire Economy. Nobody escapes this financial vortex when America goes under. NO ONE. But some can retain a good share of what they've already got instead of LOSING IT ALL. Competitive Devaluation is a PIPE DREAM. A nice, smooth "orderly" devaluation of the dollar???? YEA RIGHT. Why did Bretton Woods fail? Why don't OPEC members honor their quotas? Bretton Woods 2.0 will not last, either. You think I'm happy about that??! We're the next Argentina. AND OUR LEADERS KNOW IT. THEY PLAN TO RUIN THE COUNTRY. THIS IS FINANCIAL WARFARE.
New day, new crisis. Mexican pig flu, global warming, terrorist Iran, texting while driving, fear, fear, fear.......OMG the invisible man is here!!!!!! Big brother is watching.