Why America's Currency Is the World's Problem

Cryptogon
December 2nd, 2007

Via: Der Spiegel:

What if fear of a permanent decline in values spreads in all of those countries that have accumulated vast quantities of the US currency in the past few years, countries like China, Japan and the Asia Tiger states, as well as the oil-exporting countries and Russia? What if panic breaks out and the new mantra is to “get out while you can?”

If that happens — and this is the horror scenario — the dollar will crash and, along with it, the international financial markets. Then the globalized world will be in a worldwide depression. This scenario is less likely, because promoting it cannot be in anyone’s best interest. And yet it cannot be ruled out completely, as even the most sensible bankers privately concede.