Reply #26: Britain had virtually no economy after WW-II [View All]

[cprise]

It had just been through two bloody wars. What did it have to export? To give other poeple in return?

We, on the other hand, have a lot to lose now, not the least of which is the world's confidence. Psycology is an important factor in how a currency is used because money doesn't DO anything except motivate people. Do people abroad continue to feel we have something to offer them? If not, they won't be so keen to accept and hold onto our dollars in return for their STUFF. A country that has little to offer is a country in its way to instability.

I am not an economist, but am happy to entertain AEI logic... fully expecting to rout their premise, of course.

And what is that old addage about controling the coinage, anyway? In this case, the coinage of the world. Why do economist say the world has granted us 'supernatural' staying-power against our immense and mounting debt?

What no one has explained to me is what possible role a petro-currency plays in the decision-making of say, the IMF or World Bank.