tag:blogger.com,1999:blog-7982981413278241287.post1759776029542552189..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: The Beginning Of The End For The U.S. DollarDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7982981413278241287.post-11319074881045205522009-10-08T05:34:58.253-06:002009-10-08T05:34:58.253-06:00No, because you need the dollars to change the eur...No, because you need the dollars to change the euros into. It makes no difference from the US' point of view whether you hold them or not. People still need them.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-68029386967155731482009-10-07T09:49:33.437-06:002009-10-07T09:49:33.437-06:00Dave, love your blog. First time posting.
Mish&#...Dave, love your blog. First time posting.<br /><br />Mish's argument was that even if dollars are needed for the purchase of say, oil, then you could convert your Euros into dollars (rather instantaneously in the forex market) for the transaction without actually "holding" dollars. <br /><br />If you don't have to "hold" dollars to make global transactions then it diminishes the dollars importance as a reserve currency.<br /><br />Does this notion have any merit? I'm not a forex trader.<br /><br />thanks!Amannoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-1444125363617363882009-10-06T17:15:58.624-06:002009-10-06T17:15:58.624-06:00One more thought and then I'm off to spend the...One more thought and then I'm off to spend the irrelevant pieces of paper decreed to have some sort of value in exchange for groceries, and it's irrelevant that manufacturer of said piece of paper can manufacture an infinite supply of that paper, constrained only by the supply of trees on earth. I guess that makes reserve status irrelevant.<br /><br />Crackhead Ben Bernanke will ultimately print dollars to the point were the value of each marginal dollar is equal to the cost of printing that dollar. In the case of our "new" technology-driven economy, and given that Bernanke has already issued a famous speech in which he proudly proclaimed that the modern electronic printing press "allows [the U.S.] to produce as many U.S. dollars as it wishes at essentially no cost,"(1) then theoretically the supply of dollars can be close to infinite, conversely inflation can theoretically approach infinity. <br /><br />I guess Mish would say it's all irrelevant.<br /><br />(1) Ben Bernank, Remarks to the National Economists Club, 11/21/2002Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-75999244917844396542009-10-06T17:07:11.029-06:002009-10-06T17:07:11.029-06:00gyc, I'm not sure how ANYONE can possibly come...gyc, I'm not sure how ANYONE can possibly come up with any rational arguement as to why reserve currency status is irrelevant. That's retarded. Just think about the degree of economic hegemony imbued in having control over THE currency which is used to settle all global trading activity. It's the economic equivalent of having the world by the balls, especially when such currency is pure fiat.<br /><br />To be quite frank, I have thought for years that Mish should stick to photographing cow pies, cheese factories and the Schlitz brewery operations in Milwaukee because I have never really seen evidence of his having a good grasp of economics buried anywhere in his dressed up prose.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-53766510975096602922009-10-06T16:33:41.479-06:002009-10-06T16:33:41.479-06:00All,
That was a Mish Shedlock piece. I was a bit ...All,<br />That was a Mish Shedlock piece. I was a bit confused too. I think we need a clear picture as to why "reserve currency" status is such a BFD. I saw many argue today that reserve status is not that huge, but obvioulsy that cannot be correct.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-50907114919954292692009-10-06T14:25:58.012-06:002009-10-06T14:25:58.012-06:00LOL. It's amazing how rediculous some of the ...LOL. It's amazing how rediculous some of the commentary out there is. Kitco had a piece about gold as measured in dollars today that was beyond retarded.<br /><br />Ask the author if it matters whether or not you price oil in dollars or gold...Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-63173441380684329432009-10-06T10:34:34.686-06:002009-10-06T10:34:34.686-06:00I just read an unbelievable commentary on a well-k...I just read an unbelievable commentary on a well-known financial website stating that it doesn't matter in what currency oil is priced. The author compared it to the fact that you can measure the temperature in either farenheit or celsius or kelvin, but the temperature is the same. I was going to leave a comment, but I didn't even know where to start!Anonymousnoreply@blogger.com