The Giant Pool Of Money. Implications

Just another opportunity for me to gripe! We Americans need to unify before the foreign people take all of the good jobs and money.

they have the same value "in dollars". What if we used Euros? Which has more value? An ounce of gold, a loaf of bread, or a giant stone from Yak?The bread is the only item that we can gauge based on our unchanging human need. But wait...human need even changes. Should a garment worker in Indonesia expect the same wage as a garment worker in Atlanta? (No, because the wage is based on need...on what that individual needs to buy and purchase for their survival. 30 cents an hour goes farther for one than for the other.) Actually I was listening to Alex Jones but am keeping an open and skeptical mind. It was here that I first heard of the alarm being sounded if the dollar was dropped globally for being a reserve currency. The way it was explained, other nations have to be more disciplined since they cant simply print more of their own currency and have it pass muster globally...whereas the US can and does and has increased our money supply and not be forced to be accountable as much. Beyond that, I dont know how or why this all works. This is all I have:Ron Paul explains that the free ride since Breton Woods has come to and end and that we wont be able to exploit as much with a new reserve currency system that we cant control. Paul claims that such a new system would "crash the dollar" and this is what rightly worries me and should worry every American.Edited by Phat, : No reason given.

Honestly? I dont know. I am asking because I worry about the US undergoing an internal crises. What if our money alone becomes worthless? How will we who are paid in dollars survive? I am championing the rights of fairness rather than exploitation by the rest of the world. I am asking what we must do to remain in the game with our assets intact and valued the same as a Europeans would be. (or the prevailing standard)

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To remain in the game we need to educate the current crop of two year olds and all of their little siblings that come after them, get rid of all Local School Boards and instil a National Curriculum, raise taxes drastically, particularly on the upper middle class and above, remove the stops on the Social Security taxes, increase the governmental oversight of industry, create a single payer National Healthcare system, re-regulate all utilities and much of transportation and communications and follow through for about 25-50 years.

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The problem is lack of consensus. Politicians seem to waste so much time in deadlock. Your ideas sound rational and effective, but implementation remains illusive.

in the Twenties, an ounce of gold would buy a new suit for a man. Today, it still will.

I've read lately that inflation will increase dramatically in the coming five years. Never really bothered to read why, but I will look into it. Do you disagree that it will occur?

Here is one such suggestion by the president of the World Bank.

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Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today, said (World Bank chief Robert)Zoellick.

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He said such a reform would reflect economic realities and should be considered as a successor to the existing global currency paradigm known as Bretton Woods II.

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World Bank chief calls for new gold standardPersonally I'm not sure its a good idea, since China owns so much gold. We certainly don't want to help the competition, but since we are in debt, we have little choice.

Since the dollar is the only currency that can be printed and hyper inflated, it gives the US consumers an edge. If China and the rest agree to back a new system, whether using gold or not, the US consumers will suffer a drop in our already embattled standard of living.

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The US then discovered a new way to convince the world of the high value of paper. A deal was struck to price oil in dollars, which led to the creation of the "petro dollar". While not as stable as the gold backed dollar of the past, the new petro dollar has allowed the US dollar to maintain its "world reserve currency" status.

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What exactly does the phrase "world reserve currency" mean then? This is a special status whereby the world's major economies have agreed to make the dollar the universal currency through which most international business is carried out. This also means that most commodities are priced in dollars and that commodities trading done in other currencies requires a conversion to dollars.

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Over the past year the calls from heads of state and finance ministers around the world have been getting louder and more frequent to supplant the dollar with a new world reserve currency or just abandon the dollar all together.

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That was Conservative Truth.org
I can probably find two or three other confirmations that the dollar is unofficially used as the exchange medium.Edited by Phat, : No reason given.

Not exactly. I am googling for answers and for better questions to ask. The central premise of my rant was that if the United States continues to be irresponsible in handling our debt problems, the rest of the world may pass us by. And that's not fair for average Joe's like me who have every right to be as prosperous as any China-man. China Plans Path to Economic Hegemony So evidently reserve currency=anchor currency. And yes, this is a problem. You have mentioned many times before that we in the US need a fifty year plan to rebuild our nation. Reality shows us, however, that our Congressional committees can't even agree on what to cut from the budget. Other nations see this and are calling for the dollar to get booted out of its anchor currency spot which gives us favorable terms in pricing...as in the c ase of oil, for example. Right? And those Chinese have studied up on this! What I am assuming from this article is that what advantages China stands to gain are the advantages which we now have, yet are losing. For example.... Thus, the strength of our economy is tied into the dollars future success or failure now!Apparently, China is not quite ready to take over yet. Now of course, much of our problem is traced to the fact that 90% of Americans don't understand this stuff at all. I know I don't, but am attempting to use deductive reasoning to try and make sense of it all. I read a lot of opinions, blogs, articles and papers from many different sources. Much of it is simply untrue, and its my responsibility to try and make sense of it all. As an example, I wondered why it seemed as if America was turning against itself.Why do the competing ideologies of the two party system cause almost a national paralysis in our Congressional system? It irks me that these politicians get paid for concluding that stalemate is the only option! Compounding this problem is the fact that the American public wants instant gratification, a return to the good old days, and the warm and comfortable feeling that we had during the aberration period after World War II. Jon Jost,a filmmaker, has lived since 1962 in Chicago, San Francisco, Ben Lomond, Los Angeles, Leucadia (Ca.); Cottage Grove (OR), Kalispell, Butte (MT), Berlin, London, Lisbon, Frankfurt, Paris, Rome, New York City, Portland, and Lincoln NE. He presently lives, single again, in Seoul, S Korea, where he quit his job as Distinguished Professor at Yonsei University in July. His blog talks of the demise of America based on his perspective, and has lots of great photographs and artwork. He explains why the middle class in America is so mad at the so-called 1% of the wealthiest people. Capitalism is running low on third world people to exploit, and thus we are turning on ourselves. The system is broken, and Jost also agrees with something you have said a time or two, jar: Getting back to the Giant Pool Of Money, I worry that once the pool leaves the hands of Americans and becomes the deposits of foreigners, it will be nearly impossible to get it back.And yes, we have discussed education. My question, among many, is why no politician simply lays it all out for what Buzsaw calls "The Sheeple".

OK.Should the creation of jobs be minimum wage jobs at the expense of higher paid jobs? This recession has shown us how vulnerable the Middle Class are to bumps in the economy. The wealthier people seemingly know of no comparable hardship. Could America survive without the Forbes 400?

Earlier, I said: What I am getting at is that our own wealthy are taking our money from us and keeping it for themselves.The U.S. middle class is under attack not only by foreign competition but from our domestic monied class.

They are underbidding us and forcing us to work for less.Take I.T. workers. The ones from India will work for $40,000 a year, half what US ones used to be paid. A successful competitive effort is construed by many as an "attack" upon our very way of life and standard of living.

If enough new employees agree to work for less of a wage than I am making, they very well could vote my wage down if there came an ultimatum.

People will take scraps if they get hungry enough. They wont get paid even as much as we make now, however. They will have more skills and get paid less. Watch it happen at your local grocery store.Its a shame that the US middle class is being exploited by corporate interests who see labor as a mere number on an expense sheet.