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Economy will get worse if the dollar loses reserve currency status

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Posted: Saturday, May 4, 2013 12:00 am

The U.S. dollar has been the world's reserve currency for many decades, so most Americans don't have a clue about what happens when losing that status. We believe that could never happen in the USA. When countries get too far in debt, consume too much or produce too little, this can easily happen, and we are almost in that situation.

Most Americans don't remember or just don't know that this very thing happened in Great Britain starting in 1970. Britain's sterling was the reserve currency for nearly 200 years. It continued to play the role until after World War II, when America was forced to prop up Britain's economy. Most of us old guys remember the Marshall Plan, when we gave billions to help many of the European countries rebuild.

Britain at that time pursued a socialist government, and the government took over most of Britain's major industries.

Like Barack Obama, Britain's leaders wanted to spread the wealth, and pretty soon the country was flat broke.

The final straw came when things got so bad that the Labor Party (socialists) decided to devalue the currency by 14 percent overnight. Anyone depending on British Sterling automatically was 14 percent poorer — overnight. The move made everything much more expensive in the following years. As for Britain's people, it ignited one of the worst decades that Britain ever experienced.

I hate to admit it, but we are looking down that same road.

Sam West

Acampo

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Welcome to the discussion.

3 comments:

  • Eric Barrow posted at 7:33 am on Mon, May 6, 2013.

    Eric Barrow Posts: 1479

    I think WWII had more to do with Britain’s lagging economy than any sort of move towards socialism and speaking of socialism just three years after its implementation all of the country’s receiving funds from the Marshall plan had economies 35% stronger that before the war. There’s a situation where spreading the wealth worked out pretty well. The problem with just parroting right wing radio is that it doesn't hold up in the light of facts.

     
  • Ed Walters posted at 1:40 pm on Sat, May 4, 2013.

    the old dog Posts: 484

    This must be a backyard name, and I wonder why the regulars have not picked up on your letter, since it is sadly the truth. And to think Barry believes he is doing the right thing and with Rodham Clinton lurking in `16 it will be more of the same. The only answer is, build more and faster money making machines since we are doomed anyway.

     
  • Joanne Bobin posted at 1:39 pm on Sat, May 4, 2013.

    Joanne Bobin Posts: 4488

    Really - you can't make this stuff up. It's too good.

    Another fake poster here. How long will Barak last?

     

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