The dark side of the dollar?

Question

So many world economies use the dollar as a reference, many countries accept it as currency, however a country is said to not only be deffined by its people, physical land, culture but also their own coin. Countries such as Argentina use it nearly as much as its own Peso. Therfore it is not their money its the US's money. How can a country be liberated from having to depend on the dollar?? (after all, the US has the largest internal and external debt in the world and still the dollar is used)

Answer 1

Why should a country want to be "liberated" from their dollar convertibility? All (including Argentina) who have it have chosen to do it. Nobody has been forced to do it. How can you be "liberated" from something you have chosen to do?

The United States is the most powerful, stable bastion of economic power in the world. It has never defaulted on its debts, given its stability and power it probably never will (until everyone else has melted down), and US Treasury bills are the safest place to have your money in the world. When there is a war or the threat of one, everyone in or near the war zone converts into the dollar because it is the ultimate in safety and security while being accepted everywhere so you can get it and spend it when you need to.

So let's not talk about "liberation", let's talk about "opportunity", "safety", "security" which is why people move into the dollar. The largest, most innovative and powerful economic engine in the world will be operating when the others have run out of gas.

The debt doesn't mean much in the short term. When I can lose my money where it is today or tomorrow, and there is a safe place to put it, do I worry about debts, etc. whose worst effect could only be to devalue the dollar --- but over a long time.

As far as your (rather romantic) philosophical points are concerned, the "coin" of the US is determined by the people, land culture and responsibility not as something separate and distinct. As one of the most stable countries in the world, the American "coin" is not in bad shape when you need a safe place for your money.

When the next world conflict starts, where do you think the money will go? Where it is the safest. And where will that be?

Answer 2

not sure how but it sure says who topdog is THE USA!!