http://www.survivalblog.com/2007/10/from_the_survivalblog_archives.html
Headline: Dumping of US Dollar Could Trigger ‘Economic September 11’
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There is a potentially fatal flaw at the heart of the global economy: the strong possibility of financial meltdown following a collapse of confidence in the greenback, Clyde Prestowitz tells Bruce Stannard
29 August 2005
THE nightmare scenario that haunts global strategist Clyde Prestowitz is an economic September 11 — a worldwide financial panic triggered by a sudden massive sell-off of US dollars that would lead inexorably to the collapse of economies around the world. If that happens, Prestowitz predicts: “It would make the Great Depression of the 1930s look like a walk in the park.” Australia would be sucked into the vortex of such a recession, which would cause great hardship throughout the world, he warns. Prestowitz is not a doomsayer, neither is he alone in his views. As president of the Economic Strategy Institute, a Washington think tank, he is in regular contact with the most influential US business leaders, several of whom — Warren Buffet and George Soros included — have taken steps to hedge their currency positions against the possibility of a cataclysmic plunge in the greenback. “Right now,” he says, “we have a situation in which the US is running huge trade deficits — about $US650 billion ($766 billion) in 2004 — which are financed by borrowings from the central banks of Asia — mainly the Chinese and the Japanese. All the world’s central banks are chock-full of US dollars — they’re holding many more dollars than they really want. They’re holding those dollars because at the moment there’s no great alternative and also because the global economy depends on US consumption. If they dump the dollar and the dollar collapses, then the whole global economy is in trouble.
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Sigh!
TEOTWAWKI (The End Of The World As We Know It) is postulated by a hyper inflation in Patriots: Surviving the Coming Collapse by James Wesley Rawles — the editor of SurvivalBlog.com.
So clearly his blog is sensitive to this issue.
But that doesn’t make it “impossible”.
When money is no longer a “store of value”, what does one do?
Beats me, but I’m open to suggestions.
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Reinke Faces Life 