http://www.reuters.com/article/2011/05/25/us-economy-un-idUSTRE74O6EI20110525
So now that the almighty, all trusted UN is saying that the U.S. world reserve currency could forseeably collapse and break the world financial system, you think people are going to actually pay attention? I have alot of friends who still say things like “I just don’t see that happening. I mean look where we live, they wouldn’t let that happen” (word for word too). Now that some “official” world organization is saying it, maybe more people will realize there is still a financial crisis.
Who cares about the UN, but it would be about time that the dollar collapses. Almost 100 years of inflationary nonsense, time for it to end.
The status of the US dollar as the world’s reserve currency first became threatened in 1958, with the restoration of all (non-Soviet-bloc) European currencies to full convertibility. This was a scant 13 years after the advent of the Bretton Woods System. Since 1971, when Nixon unilaterally closed the “gold window”, the dollar’s status as the world’s reserve currency has been maintained purely by projection of US power - economic, political/diplomatic, and military. It seems that the unraveling of this system is really starting to accelerate. However, the over-arching goal of all US foreign policy has been to preserve this system at all costs. Originally this was because it brought immense economic benefits to the US (at the expense of the rest of the world), but now it’s because continuing the system is seen as the only way to stave off catastrophe. However, as US foreign policy becomes increasingly desperate to this end, it accelerates the unraveling of the system even further. I, for one, wouldn’t be surprised in the least if, in the end, the US decides to go “all in” and wage a global war in the hopes of being the “last man standing”.