Saturday, November 24, 2012

Marin Katusa

The majority of international trade is done in US dollars. That means that every country aims to maximize the US-dollar surplus garnered from its export trade.
A strong US dollar allowed Americans to buy imported goods at a massive discount. … Here, finally, the US hit on a downside: the availability of cheap imports hit the US manufacturing industry hard, and the disappearance of manufacturing jobs remains one of the biggest challenges in resurrecting the US economy today.
There is another downside, a potential threat now lurking in the shadows. … If that trade shifts to a different currency, countries around the world won’t need all their US money. The resulting sell-off of US dollars would weaken the currency dramatically.

1 comment:

  1. The Demise of the Petrodollar

    by Marin Katusa

    http://theeconomiccollapseblog.com/archives/11-international-agreements-that-are-nails-in-the-coffin-of-the-petrodollar

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