Skip to main content

View Diary: Idiot Teabag FL Congressman: Default will “bring stability to the world markets”! (94 comments)

Comment Preferences

  •  More Stable? (1+ / 0-)
    Recommended by:
    SemDem

    No basket of currencies has been more stable than the USD since WWII. The effects of default on the USD would be less than the effects on the individual other currencies, except perhaps the Swiss Franc. The resulting return of $TRILLIONS to FOREX speculation, especially on the stretched to near disintegration EUR, would cause instability like never before.

    And it would render $TRILLIONS in USD foreign reserves, especially among underground and infrastructure kingpins like OPEC and China, so devalued that they'd have lost years of painful work collecting it.

    Breton Woods and the USD reserve system were ingenious ways to ensure US hegemony no matter what came down the pipe. It was designed by true masters of geopolitics, not the tinhorn inheritors who've wasted so much of the legacy since, say, toppling Mossadegh. Only a few rogue states would even possibly net benefit from dumping USD except perhaps gradually over a very long otherwise stable growth period. Which is one reason the US and its partners have maintained global crisis, especially among the national interests of large US debt holders, since the dollar became the global currency.

    "When the going gets weird, the weird turn pro." - HST

    by DocGonzo on Mon Oct 07, 2013 at 06:48:58 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site