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At the rate the US is proceeding the world will need something to replace the dollar in the mid term.  The euro is the strongest candidate, but can it do the job by itself?

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Jun 20th, 2009 at 12:26:58 AM EST
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De-Dollarization - Dismantling America's Financial-Military Empire - Michael Hudson - financial economist and historian

Challenging America will be the prime focus of extended meetings in Yekaterinburg, Russia (formerly Sverdlovsk) today and tomorrow (June 15-16) for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (SCO). The alliance is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakistan and Mongolia. It will be joined on Tuesday by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).     

The attendees have assured American diplomats that dismantling the US financial and military empire is not their aim. They simply want to discuss mutual aid - but in a way that has no role for the United States, NATO or the US dollar as a vehicle for trade. US diplomats may well ask what this really means, if not a move to make US hegemony obsolete.



"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
by ChrisCook (cojockathotmaildotcom) on Sat Jun 20th, 2009 at 07:47:10 AM EST
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An excellent article by Michael Hudson, reiterating and updating previous points delineating the manner in which the USA has used the reserve currency status of the dollar to unwillingly enlist the rest of the world to finance the military encirclement of Russia, China, the Mid-East and Central Asia with US military bases.  Now he is pointing to the likely means towards the possible unraveling of that accomplishment.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Jun 20th, 2009 at 10:17:19 AM EST
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are all that interested in using the only eisting alternative to the dollar, which is the euro.

They will NOT be able to create another alterantive themselves, because who would be crazy enough to put one's savings in rouble or yuans?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Jun 20th, 2009 at 12:33:46 PM EST
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