Comments on Maison Fleury: China and The FED, QE and nukes

Fair enough...we did really set up quite a racket ...

2009-03-12T15:55:00.000-07:00

Fair enough...we did really set up quite a racket in 1944 at Bretton Woods and followed that up with a private deal with the Saudi's !!

Hey thanks for clarifying the thing.

2009-03-12T07:40:00.000-07:00

Hey thanks for clarifying the thing.

Pierre, Certainly, military power helps the reserv...

2009-03-12T02:55:00.000-07:00

Pierre,

Certainly, military power helps the reserve currency status but the big thing supporting the dollar is still the size of the US economy (large). Russia has nukes but the ruble is not a reserve currency. It is the inertia of the US economy, even in times of depression, that ensures it is so. And while it is so oil producing countries will accept US paper for their oil, in fact depend on it.

An embargo would lead to war. Queue in Roy's broken record "see? Bush was a genius! invading iraq! "liberating" the oil!""

If OPEC refuses dollars and demands gold, Yen, Yua...

2009-03-11T18:56:00.000-07:00

If OPEC refuses dollars and demands gold, Yen, Yuan, or, God help us, Rubles for oil...game over in the USA. And given production shrinkage, we are likely heading for shortages anyway down the road a bit which will make this option more viable except for ...

The only thing left supporting the dollar is US military power and presence and nuclear weapons. Scary.