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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
| Posts: | 6399 |
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One of the pillars propping up US superpower status and worldwide economic dominance is the dollar being accepted as the predominant reserve currency. Central banks of various countries have to stock up dollar reserves because they can only buy their oil requirements and other major commodities in US dollars.
This US economic strength, however, is a double-edged sword and can turn out to be America's economic Achilles' heel. A run of the US dollar, for instance, which would cause a dollar free-fall, can bring the entire US economy toppling down.
What is frightening for the US is the fact that China, Russia and Iran possess the power to cause a run on the US dollar and force its collapse.
There is perhaps a time and place whereupon the option of ignorance is no longer an option.
That time and that place can be embraced or ignored. Fantasy can be fun. Facing reality while reeling in a self-inflicted stupor may not be fun.
When is it time to invest wisely?