I agree, but how much of that will be due in the next 3 decades? That's why I specifically gave that time frame. Here's something more concrete: By 2020, in addition to payroll taxes and premiums, Social Security and Medicare will require more than one in four federal income tax dollars. By 2030, about the midpoint of the baby boomer retirement years, the programs will require nearly half of all income tax dollars. By 2060, they will require nearly three out of four income tax dollars. Source: http://www.ncpa.org/pub/ba662
Well at least the Chinese are feeling our dollar pain too. They hold billions worth of U.S. Treasury bills earning "0" interest, and with the dollar still poised to tumble even further, they are for the foreseable future, holding a money bag full of "donkey sh**" eeh haw! eeh haw!
How is it wrong? The dollar has been losing value over the last 35 years, albeit a few hiccups, money supply & debt all across the board has been exploding. Cost of living has gone up to unsustainable levels. The largest state in US, which is more significant than most nations, has pretty much gone bankrupt via using IOUs with even those most optimistic budget projections looking like sh*t.
Just wait and see if other nations( Russia, Saudia Arabia, China, Japan, and France) decide to really convert to a basket of currencies, and ditch the U.S. dollar, to trade oil. The subsequent, further U.S dollar weakness in this country (U.S.) will be the norm and our standard of living will be forever adversely affected. Thank you very much Mr Bush! P.S, No wonder Ive hated Texas for as long as I can remember, full of ignorant, arrogant, racist, hillbilly, know-it-alls........
Isn't this a "tempest in a tea pot"? Couldn't oil seller receive payment in $USD and immediately exchange to Euro or Yen? Couldn't oil seller who is afraid of $USD declining... hedge his $USD receipts in Forex?
Transaction costs via spread. Transaction costs again. Does not make sense if you're active buyer/seller of oil. That's why large USD reserves are held by active participants in oil.
Transaction costs? Big players on an exchange? What's the vig, couple of pips?? Does THAT justify a wholesale change in how the oil world does bidness??
as of Wed, Oct 28th, the USD has rebounded to strongly as to have wrecked so many shorts and negative position plays, including CL (crude oil prices) so, perhaps this is / was designed to have that affect...