Guest Post: How The U.S. Dollar Will Be Replaced

Tyler Durden's picture

Submitted by Brandon Smith from Alt-Market

How The U.S. Dollar Will Be Replaced

After being immersed in the world of alternative economic analysis for several years, it sometimes becomes easy to forget that most people do not track forex markets, or debt to GDP ratio, or true unemployment, or hunch over IMF white-papers highlighting subsections which expose the trappings of the globalist ideology.  Sometimes, you just assume the average person knows what the heck you are talking about.  This is, of course, a mistake.  However, it is a mistake that is borne from the inadequacy of our age and our culture, and is not necessarily a product of weak character, either of the analyst, or the casual reader.   

The great frustration of being actively involved in the Liberty Movement is the fact that many people are rarely on the same page (or even the same book) during political and economic discussion.  Where we see the nature of the false left/right paradigm, they see “free democracy”.  Where we see a tidal wave of destructive debt, they see a “responsible government” printing and spending in order to protect our “best interests”.  Where we see totalitarianism, they see “safety”.  Where we see dollar devaluation, they see dollar strength and longevity.  Ultimately, because the average unaware citizen is stricken by the disease of normalcy bias and living within the doldrums of a statistical fantasy world, they simply have no point of reference by which to grasp the truth when exposed to it.  It’s like trying to explain the concept of ‘color’ to a man who has been blind since birth.

Americans in particular are prone to reactionary dismissal when exposed to facts that disrupt their misconceptions.  Our culture has experienced a particularly prosperous age, not necessarily free from all trouble, but generally spared from widespread mass tragedy for a generous length of time.  This tends to breed within societies an overt and unreasonable expectation of ease.  It generates apathy, and laziness.  A crushing blubberous slothful cynicism subservient to the establishment and the status quo.  Even the most striking of truths struggle to penetrate this smoky forcefield of duplicitous funk.

In recent articles, I have outlined the very immediate dangers of several potential economic events that are likely to take place this year, including the exit of peripheral countries from the European Union, the conflict between austerity and socialist spending in France and Germany, the developing bilateral trade agreements between China and numerous other countries which cut out their reliance on the U.S. dollar, and the likelihood that the Federal Reserve will announce QE3 before the end of 2012.  All of these elements are leading in one very particular direction:  the end of the Greenback as the world reserve currency. 

In response to these assertions I have received letters from some people (some of them indignant) questioning how it would be even remotely possible that the dollar could be replaced at all.  The concept is so outside their narrow world view that many cannot fathom it. 

To be sure, the question is a viable one.  How could the dollar be unseated?  That said, a few hours of light research would easily produce the answer, but this tends to be too much work for the fly-by-night financial skeptic.  Sometimes, the job of the alternative analyst is to make the obvious even more obvious. 

So, let’s begin…

The Dollar A Safe Haven?

This ongoing lunacy is based on multiple biases.  For some, the dollar represents America, and a collapse of the currency would suggest a failure of the republic, and thus, a failure by them as individual Americans who live vicariously through the exploits of their government.  By extension, it becomes “patriotic” to defend the dollar’s honor and deny any information that might suggest it is on a downward spiral. 

Others see how the investment world clings to the dollar as a kind of panic room; a protected place where one’s saving will be insulated from crisis.  However, just because a majority of day trading investors are gullible enough to overlook the Greenback’s pitfalls does not mean those dangerous weaknesses disappear. 

There is only one factor that shields the dollar from implosion, and that is its position as the world reserve currency.  Without this exalted status, the currency’s value vanishes.  Backed by nothing but massive and unpayable debt, it sits frighteningly idle, like a time bomb, waiting for the moment of ignition.  

The horrifying nature of the dollar is that it is only valuable so long as foreign investors believe that we will pay back the considerable debts that we (the American taxpayer at the behest of our criminally run Treasury) owe, and that we will not hyperinflate in the process.  If they EVER begin to see their purchases of dollars and treasuries as a gamble instead of an investment, the façade falls away.  Yet again this year Congress and the Executive Branch are “at odds” over the expansion of the debt ceiling, which has been raised to levels beyond the 100% of GDP mark:

http://www.nytimes.com/2012/05/17/us/politics/obama-presses-congress-to-act-on-his-priorities.html

Barack Obama has made claims that increases in the debt ceiling are “normal”, and that most presidents are prone to hiking the barrier every once in a while.  Yet, back in 2006, when George W. Bush increased debt limits, Obama had this to say:

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills…Instead of reducing the deficit, as some people claimed, the fiscal policies of this administration and its allies in Congress will add more than $600 million in debt for each of the next five years…Increasing America's debt weakens us domestically and internationally. Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

For once, Barack and I agree on something.  Too bad the man changes his rhetoric whenever it’s to his advantage. 

Today, Obama now asserts that raising the debt ceiling is not an opening for more government spending, but an allowance for the government to pay bills it has already accrued.  This is disingenuous and hypocritical prattle.  Obama is well aware as are many in Congress that as long as the Federal Government is able to raise the debt ceiling whenever it suits them, they can increase spending with wild abandon.  It’s like handing someone a credit card with no maximum limit.  For most men, the temptation would be irresistible.  Therefore, one can predict with 100% certainty that U.S. spending will never truly be reduced, and that our national debt will mount in tandem until we self destruct.

How has this trend been able to continue for so long?  Our private central bank has created the fiat machine by which all economic depravity is possible.  Currently, the Federal Reserve is the number one holder of U.S. debt.  The Federal Reserve creates its own capital.  It prints its wealth from thin air.  The dollar, thus, has become its own lynchpin.  The secretive institution which has never been subject to a full audit is now monetizing endless debt mechanisms with paper promises.  What value would any intelligent investor put on such a fraudulent economic system?           

The epic dysfunction of the dollar is rooted in its reliance on perception rather than tangible wealth or strong fundamentals.  It is, indeed, like any other fiat unit, with all the inevitable pitfalls built into its structure.

Ironically, the value of the Dollar Index is measured not by its intrinsic buying power, or its historical buying power, but its arbitrary buying power in comparison with other collapsing fiat currencies. 

The argument I hear most often when pointing out the calamitous path of the dollar is that it is the go-to safe haven in response to the crisis in Europe.  What the financially inept don’t seem to grasp is that the shifting of savings back and forth between the euro and the dollar is just as irrelevant to our currency’s survival as it is to Europe’s.  BOTH currencies are in decline, and this is evident by the growing inflationary pressures on both sides of the Atlantic.  Ask any consumer in Greece, Spain, France, or the UK how shelf prices have changed in the past four years, and they will say the exact same thing as any consumer in the U.S.; costs have gone way up.  Therefore, it makes sense to compare the dollar’s value not to the euro, or to the Yen, but something more practical, like the dollar of the past….

In 1972, just as Nixon was removing the dollar from the last vestiges of the gold standard, a new car cost an average of $4500.  A home cost around $40,000.  A gallon of gas was .36 cents.  A loaf of bread was .25 cents.  A visit to the doctor’s office was $25.  Wages were certainly lower, but they kept much better pace with the prices of the era.  Today, the gap between wages and inflation is insurmountable.  The average family is unable to keep up with the flashflood of rising prices.

According to the historic buying power of the dollar, the currency is a poor safe haven investment.  With the advent of bailout efforts and debt monetization through quantitative easing, its devaluation has been expedited dramatically.  The Fed has left the door open for what I believe will be a final destructive round of publicly announced QE, weakening the dollar to near death:

http://www.reuters.com/article/2012/05/16/us-usa-fed-idUSBRE84F12320120516

The question then arises; why do foreign countries continue to buy in on the greenback?

The Dollar Dump Has Already Begun

One of my favorite arguments by those defending the dollar is the assertion that no foreign country would dare to dump the currency because they are all too dependent on U.S. trade.  To answer the question above, the reality is that foreign countries ARE already calmly and quietly dumping the dollar as a global trade instrument. 

To those people who consistently claim that the dollar will never be dropped, my response is, it already has been dropped!  China, in tandem with other BRIC nations, has been covertly removing the greenback as the primary trade unit through bilateral deals since 2010.  First with Russia, and now with the whole of the ASEAN trading bloc and numerous other markets, including Japan.  China in particular has been preparing for this eventuality since 2005, when they introduced the first Yuan denominated bonds.  The bonds were considered a strange novelty back then, especially because China had so much surplus savings that it seemed outlandish for them to take on treasury debt.  Today, the move makes a whole lot more sense.  China and the BRIC nations today openly call for a worldwide shift away from the dollar:

http://news.xinhuanet.com/english2010/indepth/2011-08/06/c_131032986.htm

With the global proliferation of the Yuan, and the conversion of the Chinese economy away from dependence on exports (especially to the West) towards a more consumer based system, the Chinese have effectively decoupled from their reliance on U.S. markets.  Would a collapse in the U.S. hurt China’s economy?  Yes.  Would they still survive?  Oh yes.  Far better than America would, at least…

In 2008, I warned of this development and was attacked on all sides by more mainstream economists and Keynesian proponents who stated that such a development was impossible.  Today, it’s common knowledge that our primary creditors are “diversifying” away from the dollar, though MSM talking heads and those who parrot them still claim that this is not a threat to our economy.

To be clear, the true threat to the dollar’s supremacy is not only due to the constant printing by the private Federal Reserve (though that is a nightmare in the making), but the loss of faith in our currency as a whole.  The Fed does not need to throw dollars from helicopters to annihilate our currency; all they have to do is create doubt in its viability.

The bottom line?  A dollar collapse is not “theory” but undeniable fact in motion at this moment, driven by concrete actions on the part of the very nations that have until recently propped up our debt obligations.  It is only a matter of time before the dollar diminishes and fades away.  All signs point to a loss of reserve status in the near term. 

What Will Replace The Dollar?

My next favorite argument in defense of the Greenback is the assertion that there is “no currency in a position to take the dollar’s place if it falls”.  First of all, this is based on a very naïve assumption that the dollar will not fall unless there is another currency to replace it.  I’m not sure who made that rule up, but the dollar is perfectly able to be flushed without a replacement in the wings.  Economic collapse does not follow logical guidelines or the personal pet peeves of random man-child economists.

Though, to be fair, and to educate those unaware, there IS a replacement already conveniently ready to roll forward.  The IMF has for a couple of years now openly called for the retirement of the dollar as the world reserve currency, to be supplanted by the elitist organization’s very own “Special Drawing Rights” (SDR’s):

http://www.guardian.co.uk/business/2011/feb/10/imf-boss-calls-for-world-currency

The SDR is a paper mechanism created in the early 1970’s to replace gold as the primary means of international trade between foreign governments.  Today, it has morphed into a basket of currencies which is recognized by almost every country in the world and is in a prime position to take the dollar’s place in the event that it loses reserve status.  This is not theory.  This is cold hard reality.  For those who claim that the SDR is not considered a “real currency”, they should probably warn the U.S. Post Office, which now uses conversion tables that denominate costs in SDR’s:

http://pe.usps.com/text/imm/immc3_007.htm

So, now that we know a replacement for the dollar is ready to go, the next obvious question would be:

Why would global elites destroy a useful monetary tool like the dollar?  Why kill the goose that "lays the golden eggs"?

People who ask this question are simply unable to see outside the fiscal box they have been placed in.  For global bankers, a paper currency is not important.  It is expendable. Like a layer of snake skin; as the snake grows, it sheds the old and dawns the new. 

At bottom, men who promote the philosophies of globalization greatly desire the exaltation of a global currency.  The dollar, though a creation of a central bank, is still a semi-sovereign monetary unit.  It is an element that is getting in the way of the application of the global currency dynamic.  I find it rather convenient (at least for those who subscribe too globalism) that the dollar is now in the midst of a perfect storm of decline just as the IMF is ready to introduce its latest fiat concoction in the form of the SDR.  I find the blind faith in the dollar’s lifespan to be rife with delusion.  It is not a matter of opinion or desire, but a matter of fact that currencies in such tenuous positions fall, and are in the end replaced.   I believe that the evidence shows that this is not random chance, but a deliberate process, leading towards the globalist ideal; total centralization of the world under an unaccountable governing body which operates a global monetary system utterly devoid of transparency and responsibility.   

The dollar was a median step towards a newer and more corrupt ideal.  Its time is nearly over.  This is open, it is admitted, and it is being activated as you read this.  The speed at which this disaster occurs is really dependent on the speed at which our government along with our central bank decides to expedite doubt.  Doubt in a currency is a furious omen, costing not just investors, but an entire society.  America is at the very edge of such a moment.  The naysayers can scratch and bark all they like, but the financial life of a country serves no person’s emphatic hope.  It burns like a fire.  Left unwatched and unchecked, it grows uncontrollable and wild, until finally, there is nothing left to fuel its hunger, and it finally chokes in a haze of confusion and dread…

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Spitzer's picture

If debt was simply the issue why hasn't the Yen been thrown into the dustbin yet? 

Japan is a creditor nation with savings rates averaging 15 to 20%.

And, because the US is in debt to everyone else it will fail last.

You are delusional enough to work for a rating agency. No wonder why some US CREDITORS like China have lower debt ratings then their own debt slaves (US)

Sure lots of dollar bulls in this thread....

Roy Bush's picture

Japan being a "creditor" nation is all an illusion.  Japan is a creditor nation because they engaged in the Yen carry trade for years.  This was built on debt.  They no longer produce anything and their social costs are exploding.  As for your comment about the Japanese savings rate, it is irrelevant as the Japanese central bank will have to print it's way out of massive Yen appreciation and government debt both present and future.

And yes, in the bizarro world we live in debt is power.  You have a job opportunity?  I'm open to all 6 figure opportunities!  With the momo's who are in charge now, certainly I deserve something! 

 

Clint Liquor's picture

The main factor that sheilds the dollar from implosion is that we have the majority of the guns and weapons to back up the dollar

So, if they won't use the US Dollar we will kill them? All of them?

 

Roy Bush's picture

Isn't this what we did in Iraq?  Petrodollar warefare.

 

Clint Liquor's picture

Iraq and the BRIC Nations are on a slightly different level.

Roy Bush's picture

Are they? I don't think so.  Everyone is held captive by the Bernank!  The US could blow up the Chinese economy easily.  China has plenty of social problems too that could be fanned. 

Clint Liquor's picture

I thought we were going to kill them if they quit the USD, not wreck their Economy. In any case:

China alone could destroy the USD tomorrow, if chose to by dumping the $Trillion they are holding. But, feel free to chant USA, USA, USA, if it will help.

pkea's picture

unwind trillion in reserves?

dumping dollar reserves would be epic but highly unlikely

 

 

Roy Bush's picture

Clint, you're putting a political slant on my comments that doesn't exist.  I'm just telling you what's up.  China doesn't hold the power you think it does.  They have millions of millions of people and they don't exist in a vacuum.  And what would happen if China dumped all their US paper.  I will tell you...nothing.  The Fed would buy it up or the US would tell the Chinese to go pound sand and they cannot sell it because they are "terrorists". 

The US holds all the cards!

Chaos_Theory's picture

Some day in the not so distant future, Americans are snapped out of their Budweiser and Mac & Cheese coma as they passively watch "Dancing with the Stars" to a break in programming from the Oval Office.

President ________:  "My fellow Americans...it is my duty as Commander in Chief to report that as of tonight, we are at war with the Peoples Republic of China.  Their aggression against our allies in the South China Sea over the past few months has grown increasingly hostile, and the last straw was their unprovoked attack on the USS Eisenhower in international waters.  We did not ask for this fight, but I can assure you, we will use every tool at our disposal to attain victory.  Towards that end, I have ordered the Treasury Department as of tonight to repudiate the outstanding U.S. debt instruments that China currently holds.  This action will instantly remove over one trillion dollars of funding for the Chinese war machine.  Additionally, due to the advanced air defense and fighters capabilities of the Chinese military, I have authorized the immediate acquisition of 200 F-22s and 4 stealth naval cruisers...."

Presto, debt illusion fixed. 

Cathartes Aura's picture

while I understand your argument RoyBush,

Everyone is held captive by the Bernank!  The US could blow up the Chinese economy easily. 

I'm leaning more towards the globalist banker mode - in that, there is no "US" or "China" beyond manipulating the economies towards a global meme - individual nationstates are being created and killed off at quite a pace lately, and their currencies are following - if one agrees that the bankers are global, and we know the Rothschilds have set up shop in China decades ago, then perhaps it IS just a giant game of RISK, with the target being fiat, the prize being resources - irrespective of the named "states" those things reside in.

Roy Bush's picture

Cathartes,

I have often grappled with this exact argument.  And, I agree with you to a certain extent.  However, I believe the nation-state exists in a way as the parasite needs a host.  The banksters can't live without the nation-state. The host or nation-state establishes the monetary unit, the false patriotism and means to wage the "currency" and trade wars.

The end game is just like Germany during Weimar.  The bankers will load everybody up with debt and then buy up thire assets for "pennies".  The question is whether there will be any pushback from the oppessed masses. 

Mad Max's picture

Emperor Palpatine style.

Have you been watching the track record for "rogue" countries that try to sell oil for something other than USD?

toady's picture

Yes.

The last time I counted we could do that about 17 times.

erheault's picture

Eventually the US government soulution to the debt will be the usual Zimbawee trick  we will be forced to exchange 1000 blue dollars for one red dollar and blue dollars will no longer be accepted as monies,  Presto we are out of debt our new red dollars are now in efect. Still in debt ? now it will be 100000 red dollars  for one  Purple dollar in exchange.  Dont laugh it has been done many times in history and it works every time.

Ahmeexnal's picture

Dont laugh it has been done many times in history and it works every time.

And the sheeple never, NEVER wake up.

ihedgemyhedges's picture

Kind of repetitive from former posts, but still much better written than anything Brusca would've put out............

reader2010's picture

All currencies, including the Chinese Peoples Money RMB, are worse than toilet papers. Death of USD? Hell no, as long as US Miltary still controls the distribution flow of oil and GMO seeds, USD is on a rock solid base. 

Spitzer's picture

Just like the Soveit army backed the Russian Ruble ?

How well did that turn out ?

Ahmeexnal's picture

how did your thousand year reich turn out?

reader2010's picture

USSR didn't have the power to force everyone else taking the Ruble. And that's the root cause of the problem.

Strange-Currencies's picture

Ah, conspiracy theorists...  Gotta love 'em!

SMG's picture

Yea, because anyone who believes powerful men work togehter to screw everyone else is just crazy. Anyway all conspiracies are automatically not true right?

http://www.newworldorderreport.com/Articles/tabid/266/ID/980/33-Conspiracy-Theories-That-Turned-Out-To-Be-True-What-Every-Person-Should-Know.aspx

 

 

pazmaker's picture

USD looking strong against the AUD, CAD, EUR, CHF.........at least short term

Rainman's picture

which means more ammo for QE by November

sbenard's picture

"one can predict with 100% certainty that U.S. spending will never truly be reduced, and that our national debt will mount in tandem until we self destruct."

This is my sentiment exactly! And why I am preparing and planning accordingly. It is going to get ugly before America awakens to the true awfulness of her reality!

Thanks for this article!

Bollixed's picture

"It is going to get ugly before America awakens to the true awfulness of her reality!"

And which Reality Show will Americans watch to find out their real fate? Because if it's not put into an entertainment format the sheeple will never grasp it. "Celebrity Muppet", perhaps...

narnia's picture

I agree with his conclusion that the world will be feared into accepting the SDR under emergency when worldwide trade is on the verge of collapse.  They need a global tax regime for it to work, and, mostly for that reason rather than the strict monetary one, this true lender of last resort will likely fail out of the gate.  If it doesn't fail out of the gate, it will fail eventually anyway.   

Hero Protagonist's picture

You had me until the part about the shift from the dollar to the SDR.  How does that transition take place without the old dollar holders getting crushed?  And if they get crushed, what's the incentive to make the transition?

narnia's picture

It's pretty easy for the banking system to replace all of your $ in deposit with SDR, then give you the choice of whether to use it or abandon it.  My guess is most people start using it and accepting it.

Whether they can enforce $ denominated debts is an altogther more tricky matter.

XitSam's picture

The Federal Reserve Note will likely still be in use for retail purchases. If a business wants to do international trade they will need to convert whatever currency they have into SDRs.  Prices in FRNs will skyrocket.  Savers in FRNs will get crushed. There is no incentive to make the transition, the FRN will just stopped being used for trade, ex Iran is now selling oil to China for RMB as I understand. Get your Au/Ag now.

DosZap's picture

what's the incentive to make the transition?

When your DOLLAR is deemed by the PTB as worthless.................There is your incentive.

Do they care if ANY fiat gets crushed, or their peoples wealth?.

Hell no.

IF anything, I see it as a ONE last chance to say FU, go back to the CONST and reform this bitch like it should be.

EAT your SDR's then..............

Inthemix96's picture

Let me share my thoughts here folks. You know what changed everything for me and most I know? The internet. Period. You can find out almost anything you want, when you want, or need it.

The viel has been lifted friends, and its not going back on. We all and especially here on ZH have found out to much, we know the fucking score so to speak, so for for any of you NSA, GCHQ, Interpol whoever, go and collectively fuck right off.

There are far too many of us to take on you cunts, think on that PTB.

You want it?? Well come and fucking get it then :-)

Cathartes Aura's picture

the "internet" is just like a library - lots of information held in individual "books" (blogs, etc.) - if all one continues to "read" is porn, games, celebrity gossip, sports replays, etc. - then    *shrug*     how is this useful?

as to those who read ZH, etc. - even here there is no party line (thankfully!) beyond a relatively smart readership (trolled by the same dullards that populate both culture and the interwebs) that can argue their viewpoints. . .

all the macho posturing is very old hat, and hardly shows wisdom.

blunderdog's picture

Wow them there's lotsa big ol'words!

So I'm getting it about like this: the dollar has ALREADY lost "global reserve currency" status, and there's no replacement yet, but it'll be the yuan or the IMF's SDR.

I'd say that's a reassuring prediction for the current monetary powers.  The IMF works for the USA, and China has to deal with their own national problems before they'll be projecting comparable international financial power.  It sure looks like they're for sale, though, same as all the other economic powerhouses of yesteryear.

Rainman's picture

A world currency would be an even more corruptable fiat if not tied to tangible gold or silver holdings. Replacing seven unhinged fiat monsters with one fiat mega-monster does not compute.

BanksterSlayer's picture

I still say that the next world reserve currency should be from the country that actually has proven its history of crushing Banksters: the Iceland Krona

Cosimo de Medici's picture

Though I've read Zerohedge from the days of deadhead, Gordon Gekko and Andy Dufresne, I just got an account so I could see all this up/down arrow stuff and what gets rated how.  (Plus I need a break from doing quadruple bypasses on a generation that replaced the two martini lunch with the three Cinnabun pre-lunch snack.  If you want to know what Americans have become, Google "perniculi", for it says it better than anything else.  That alone will keep you in the gym and off the Cheetos.)  That a comment so thoroughly wrong and uninformed about Iceland gets all up arrows is worth the price of admission, even if it is free.

Rather than explain here---I know enough to know counter-arguments on site are counter-productive if not outright pointless---perhaps you might consider reading a variety of sources that attempt to explain what the genesis of the Icelandic debacle was.  The Icelandic citizens come across not as banksta-slayers, but rather as people who said "if there ain't no free lunch I ain't playing anymore".  Then they handed the bill for their own speculative frenzy---for which they were more-than-willing participants along with their bankers---to the proverbial widows and orphans of the UK and Western Europe.

"The bankers made me speculate" doesn't hold water.  There is little praiseworthy about how the Icelanders made their own Hell, and it was largely an uncaring willingness to stiff far more innocent depositors that got them out of it.

orangegeek's picture

So the gist of this article is replace the FIAT USD with a FIAT IMF currency.  Unreal.

 

As the Euro continues to fall, the USD will continue to rise.  Europe can try and stop the fall, but the process is too far down the road now.

 

http://bullandbearmash.com/index/usd/daily/

Yardfarmer's picture

the IMF'ers presently possess some 2800 tons of Au at several locationsand and just recently added another $2.3 billion worth to its holdings. obviously any attempt at the establishment of an SDR reserve currency would have a significant Au component. the acquisition of some 450 million rounds of .40 caliber hollow point ammuntion along with similar vast accumulations of Pb by the Department of Homeland Security seem to warrant some obvious concern regarding the future status of the USD reserve currency. 

Lost Word's picture

Just wondering what the IMF used in trade to buy the gold ? Lead ? Uranium ? Plutonium ?

Joe The Plumber's picture

It was interesting to see all the usa haters here two years ago saying that the death of the dollar was imminent and the euro and yuan were so much better, and the usa was about to collapse at any moment due to misguided monetary and fiscal policy

killallthefiat's picture

600 million here.  600 million there.  Soon it will start to add up to real money.

Silverhog's picture

Oh boy. just what we need, a "To Big to Fail" world currency. Backed by pine cones & empty beer cans. World will get forced into supporting ever bigger Greece's.

LULZBank's picture

Is it this season's fashion to have a go at USD?

When USD goes, so will all other currencies, so anyone making a case for, or the lack of, a reliable alternative currency is very much short sighted.

World will go back to hard Money with some intrinsic value and universal demand such as Facebook accounts, Groupon vouchers and iPhone apps.

SILVERGEDDON's picture

Toilet, meet toilet paper fiat currency. Toilet paper fiat, meet Bernanke's ass. Shitty toilet paper fiat, meet the worldwide royal flush. Why ? Because no one likes shitty paper.

There. I fixed it. New short version.

New England Patriot's picture

Mr. Smith sounds like his philosophy is in the right place, but he might be careful of a creeping pride that starts to make its way into his writings.