BRIC countries 2011 = India's deficit threatens to explode!

[davidson]

US dollar is the World's Reserve Currency

The present system of reserve currencies favors the United States government and American consumers. It is a subsidy to exports to the USA by way of holding down interest rates for U.S. government debt. Central banks inflate. US can print unlimited money to buy any asset, buy everything.

 

[IndoUS]

I just tell the truth, We US can print money, QE1, QE2, QE3...and go on, because USA dollar is the World's Reserve Currency (Our secret Weapon). India has neither.

That is the most idiotic comment ever, look at the economy the more you print the more in debt you go in. If you print more you will only go into inflation. Learn basics of economics, countries can always ditch the dollar, look at what China, Japan and Russia were doing they started trading in their own currency. The US can't just print its way out otherwise you will just end up like Germany after WWII with money that is worth close to nothing.

 

[Birbal]

I'm having a hard time figuring out wether this guy is serious or just trying to troll...

 

[davidson]

That is the most idiotic comment ever, look at the economy the more you print the more in debt you go in. If you print more you will only go into inflation.

Sorry, you are wrong, You don't know what does "US dollar is the World's Reserve Currency" mean

US inflation is below 2% while we print unlimited money

 

[IndoUS]

Sorry, you are wrong, You don't know what does "US dollar is the World's Reserve Currency" mean

US inflation is below 2% while we print unlimited money

So what, a currency is just a piece of paper or cloth which shows the trust people have in the government, the day that is lost the government or country will go down. If it was so easy to pay off the debt then why don't they print it out right now?? the reason is that they can't otherwise the economy will crash, other countries will quickly loose trust in the US and start to the dump the dollar if that happened.

 

[davidson]

So what, a currency is just a piece of paper or cloth which shows the trust people have in the government, the day that is lost the government or country will go down. If it was so easy to pay off the debt then why don't they print it out right now?? the reason is that they can't otherwise the economy will crash, other countries will quickly loose trust in the US and start to the dump the dollar if that happened.

No way, US dollar is the World's Reserve Currency.

So far, the U.S. has been able to get away with massive debts and unsustainable deficits for one simple reason. The U.S. dollar is still the world’s reserve currency, as it has been effectively since World War II and literally since the early 1970′s.

Because all governments and banks in the world accept and hold U.S. dollars as the comfortable majority of their reserves, the United States is able to simply print unlimited money whenever it can not afford to pay for things that it needs. Besides this, the country can borrow money in its own currency at incredibly low interest rates that you have seen approach almost zero. Inflation below 2%.

 

[IndoUS]

No way, US dollar is the World's Reserve Currency.

So far, the U.S. has been able to get away with massive debts and unsustainable deficits for one simple reason. The U.S. dollar is still the world’s reserve currency, as it has been effectively since World War II and literally since the early 1970′s.

Because all governments and banks in the world accept and hold U.S. dollars as the comfortable majority of their reserves, the United States is able to simply print unlimited money whenever it can not afford to pay for things that it needs. Besides this, the country can borrow money in its own currency at incredibly low interest rates that you have seen approach almost zero.
inflation below 2%.

Yes but the question is till how long, countries are increasingly kicking the dollars and using their own currency for trading which saves them more money. So in time if US doesn't get its debt down it will surely be looking into what Greece is right now.

 

[davidson]

With the U.S. Dollar as the Reserve Currency of the Planet, oil and all commodities are all priced in US Dollars. This causes oil and the by product of gasoline to be incredibly cheap to you as an American.

Just compare how much other members of the richest nations whose currencies are not the Reserve Currency pay for their gasoline. While the U.S. average price of gas comes in at $2.72 per gallon, in Germany it is $6.82 per gallon, in Great Britain it is $6.60 a gallon, in Italy it is $6.40 every gallon, in France it is $6.04 a gallon, and in Japan it is $5.40 for every gallon.

The United States has become the wealthiest country in the world as a result of the US Dollar as Reserve Currency. Imports can all be paid for in US Dollars. This is only true in the United States. Other countries have to first change their currency into US Dollars to settle their balance of payments on imports and exports. Interest rates are lower than in most other countries, making loans on houses cheap.

With oil and other commodities cheaply priced in U.S. Dollars, you see an enormous range of inexpensive goods available. Food items and other items that use oil and gas as input are extremely cheap. This makes restaurants and similar outings affordable in America. The level of wealth and excess seen in the United States is simply unprecedented, and most of this results from the benefits of the Dollar as Universal reserve currency.

 

[IndoUS]

With the U.S. dollar as the reserve currency of the planet, oil and all commodities are all priced in dollars. This causes oil and the by product of gasoline to be incredibly cheap to you as an American.

Just compare how much other members of the richest nations whose currencies are not the reserve currency pay for their gasoline. While the U.S. average price of gas comes in at $2.72 per gallon, in Germany it is $6.82 per gallon, in Great Britain it is $6.60 a gallon, in Italy it is $6.40 every gallon, in France it is $6.04 a gallon, and in Japan it is $5.40 for every gallon.

The United States has become the wealthiest country in the world as a result of the dollar as reserve currency. Imports can all be paid for in dollars. This is only true in the United States. Other countries have to first change their currency into dollars to settle their balance of payments on imports and exports. Interest rates are lower than in most other countries, making loans on houses cheap.

With oil and other commodities cheaply priced in U.S. Dollars, you see an enormous range of inexpensive goods available. Food items and other items that use oil and gas as input are extremely cheap. This makes restaurants and similar outings affordable in America. The level of wealth and excess seen in the United States is simply unprecedented, and most of this results from the benefits of the Dollar as universal reserve currency.

I feel so sorry to tell you that, We USA can print unlimited money to pay and buy anything! SORRY! HAHA

http://www.defence.pk/forums/world-...llar-will-use-yuan-oil-trade.html#post2548849

Here is just one of the few cases where countries have ditched the Dollar to do trade, you can't just say that its the reserve currency so it will survive. People are not entitled to do trade in dollar they can do it in their own currency. Plus with China raising more and more concerns what will you do next, if Chinese Yuan actually becomes the reserve currency. Stop beating the same old drum of dollar being the reserve currency so it will survive. If other countries lose trust in the dollar then it is sure to go down.

 

[Chinese-Dragon]

http://www.defence.pk/forums/world-...llar-will-use-yuan-oil-trade.html#post2548849

Here is just one of the few cases where countries have ditched the Dollar to do trade, you can't just say that its the reserve currency so it will survive. People are not entitled to do trade in dollar they can do it in their own currency. Plus with China raising more and more concerns what will you do next, if Chinese Yuan actually becomes the reserve currency. Stop beating the same old drum of dollar being the reserve currency so it will survive. If other countries lose trust in the dollar then it is sure to go down.

No one else has a chance of replacing the US dollar as the global reserve currency for the next 10-20 years.

Everything can be bought with dollars, especially important resources like oil, which are even priced in US dollars.

 

[IndoUS]

Umm.. no one else has a chance of replacing the US dollar as the global reserve currency for the next 10-20 years.

Yes but they can't just print their way out either it will just burden their own economy.

 

[davidson]

I feel so sorry to tell you that US dollar as the Global Reserve Currency, We USA can print unlimited money to pay debt and buy anything at low prices! HAHA SORRY!

 

[kawaraj]

that Davidson guy is correct. India cannot be compared to the US, especially as CURRENCY is concerned.

the US can cripple India in a few minutes, not by military, but by finance, that's a harsh fact not easy to digest.

Indian's deficit is in a dangerous zone to a point that if any US agency starts short anything indian, that country is in dire straight. to note, Greek has EU to back it and a US ally, India is nobody.

 

[davidson]

that Davidson guy is correct. India cannot be compared to the US, especially as CURRENCY is concerned.

the US can cripple India in a few minutes, not by military, but by finance, that's a harsh fact not easy to digest.

Indian's deficit is in a dangerous zone to a point that if any US agency starts short anything indian, that country is in dire straight. to note, Greek has EU to back it and a US ally, India is nobody.

You are correct.

Behind the machinery of the world’s financial systems, USD Dollars are the medium of exchange the world transacts in. So every time the Federal Reserve creates (prints) a new dollar, the rest of the dollars in the world get devalued—whether they are in the United States or the United Kingdom.

The “exorbitant privilege” comes from the United States’ ability to essentially dictate monetary policy to the central banks of the world.

What this means is that the U.S. could export inflation to its trading partners.

 

[nomi007]

I stand for Indonesia soon