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horgad
1000+ Penny Miser Member
USA
1641 Posts |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
 Posted - 10/31/2008 : 09:42:12
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Updated first Post with First Bretton Woods II meeting scheduled for NOV 15.
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Edited by - horgad on 10/31/2008 09:43:36 |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 11/07/2008 : 13:20:41
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The World Tires of Dollar Hegemony
"Brazil, Russia, India and China have formed a new group (BRIC) to coordinate their interests at the November financial summit in Washington, D.C."
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BRIC group formed for the meeting and lots of other goodies in this article. So its going to be BRIC and a Euro group (UK, Italy, Germany, France?) trying to figure out a better, non dollar centric way to do international trades. The US, I assume, will resist and/or beg for forgiveness.
This could blow things wide open and the first meeting is only a week away now. |
Edited by - horgad on 11/07/2008 13:24:08 |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 11/07/2008 : 16:04:27
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quote:
Originally posted by horgad
The World Tires of Dollar Hegemony
"Brazil, Russia, India and China have formed a new group (BRIC) to coordinate their interests at the November financial summit in Washington, D.C."
You must be logged in to see this link.
BRIC group formed for the meeting and lots of other goodies in this article. So its going to be BRIC and a Euro group (UK, Italy, Germany, France?) trying to figure out a better, non dollar centric way to do international trades. The US, I assume, will resist and/or beg for forgiveness.
This could blow things wide open and the first meeting is only a week away now.
Specifically, what could happen and how could it affect the U.S.? |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 11/07/2008 : 18:52:16
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Bretton Woods I has been the framework for international trade since 1944 and is responsible for making the US dollar the worlds reserve currency. Being the words reserve currency, gives our currency strength even when the fundamentals are terrible. Everybody has to have our currency to use in international trading even if they think our currency stinks.
The purpose of Bretton Woods II (not its real name) is to try and come up with a new system. People are fed up with the US abusing their reserve currency status and there will be huge pressure to make the new system not based on the dollar. If the new system does not require dollars for international trading, our currency will be free to fall to its "natural" value.
Bretton Woods II could be gold based or partially gold based or could be based on a basket of commodities or even be EURO based or who know what, but I doubt that it will be dollar based.
In a nutshell, Bretton Woods II could very well be end game for the US dollar as we know it. IMHO
Hopefully we won't start WWIII in the process of trying to defend our monetary dominance.... |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 11/07/2008 : 19:32:43
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From what I have read on the subject, it seems to be leaning Euro-centric. The Euro is fiat toilet paper just like the US $. Even the Europeans know it. It could explain the talk of yet another new currency from the EU... But who really knows...
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Nickelless
Administrator
USA
5580 Posts |
Posted - 11/08/2008 : 06:18:31
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quote:
Originally posted by horgad
The purpose of Bretton Woods II (not its real name) is to try and come up with a new system. People are fed up with the US abusing their reserve currency status and there will be huge pressure to make the new system not based on the dollar. If the new system does not require dollars for international trading, our currency will be free to fall to its "natural" value.
Bretton Woods II could be gold based or partially gold based or could be based on a basket of commodities or even be EURO based or who know what, but I doubt that it will be dollar based.
In a nutshell, Bretton Woods II could very well be end game for the US dollar as we know it. IMHO
Hopefully we won't start WWIII in the process of trying to defend our monetary dominance....
So how would this come about? Would it be by majority vote of the member countries--or would be by unanimous vote? Would any country have veto power to prevent the dollar from getting sacked? Other than behind-the-scenes arm-twisting, what could the U.S. do to prevent the dollar from being replaced as the reserve currency? Assuming that the U.S. dollar is inching toward hyperinflation anyway, do you think other countries are looking at hyperinflation here and trying to replace the reserve currency before the dollar becomes toilet paper so that it will soften the blow for the rest of the world? |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 11/09/2008 : 07:14:59
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quote:
So how would this come about? Would it be by majority vote of the member countries--or would be by unanimous vote? Would any country have veto power to prevent the dollar from getting sacked? Other than behind-the-scenes arm-twisting, what could the U.S. do to prevent the dollar from being replaced as the reserve currency? Assuming that the U.S. dollar is inching toward hyperinflation anyway, do you think other countries are looking at hyperinflation here and trying to replace the reserve currency before the dollar becomes toilet paper so that it will soften the blow for the rest of the world?
For sure, this will not be a democratic, majority wins meeting. What we are talking about is bunch of countries with different interests and different strengths jockeying for position in an anything goes brawl.
Last time, it was an easy choice. World War II had just ended and whether or not they won or lost most major countries had just had the snot kicked out of them. The dollar was gold backed and the US was on the winning side. So the dollar was the obvious choice for the reserve currency.
This time the the biggest thing the dollar has on its side is the the whole world is wound up tightly in dollars and it will be very, very messy to try and unwind the ball. If the system is as seized up as some people are saying, that is now longer an incentive anymore for sticking with the status quo.
What will happen at Bretton Woods II? I have no idea. All of the players, the alliances, the variables are way beyond my understanding and the information about the meetings is coming out in a trickle.
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