Quote:
Originally Posted by Cube Inmate
What type of "sound footing" (my words) would satisfy you (looger) as a basis for currency? Do you believe that currency should be pegged to a gold standard? Another standard?
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I think that is the wrong question.
It is not about it being on 'sound footing' by some standard that is not in place.
It is that there IS a standard (the dollar being reflective of the value of the economy relative to other economies) BUT that standard has been thrown out of wack for too long a period. Most obviously by China (mostly, but Dubai, India, Taiwan, Korea, Japan and others have played a part as well) providing unreasonably 'cheap money' for US consumers (and government) to borrow in order to fund further purchases of their own countries US-consumer oriented exports.
Throw in a low/negative savings rate, a housing bubble, massive social inequity, baby boomers looking to retirement, a lifestyle that is heavily energy dependent from the base up, and a less and less educated and dynamic workforce compared to the rest of the world and it is only a matter of time.
Claeren.