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It wouldn't break the global economy at all. It would definitely have catastrophic consequences on the US economy though.
by DasIch 13y ago
It wouldn't break the global economy at all. It would definitely have catastrophic consequences on the US economy though.
- rosser 13y agoWith the dollar still serving as the global reserve currency, it would have implications for everyone. With the US economy still driving the majority of global consumption (though this is admittedly changing), it would have implications for everyone. "Break" is, perhaps, mildly overstating the case. But, unless you live somewhere that doesn't interact with the outside world in any meaningful way, you would without doubt feel the pain of a sudden shift away from USD like that.
- mark_l_watson 13y agoI don't disagree with you. Some time in the future, other tax jurisdictions will decide it is worth the short term pain to get off of the US$. I wouldn't be surprised if this happens slowly with end to end credit swaps, a few countries getting together to trade with alternative currencies, etc. It is in no one's best interest for this to happen very quickly. My personal bet is that in about 5 years, about half of world trade will be done in currencies other than the US$.