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In retrospect, it seems that 2008 was the same order of magnitude as 1929. Sure, the safety net was there to prevent bread lines, but the economic damage was pr
by krschultz 12y ago
In retrospect, it seems that 2008 was the same order of magnitude as 1929. Sure, the safety net was there to prevent bread lines, but the economic damage was pretty close. Europe's lack of recovery is especially alarming.
Which only reinforces your point, we've gone through one of the worst recession/depressions of all time, and USD survived. I really can't imagine what would change it other than insanely reckless monetary & fiscal policy - which is absolutely not happening right now.
- adventured 12y agoThere are only three scenarios that would alter the USD reserve status: 1) gradual erosion over decades, via the rise of the yuan for example; 2) if the QE / stimulus era explodes and the globe sinks into an even more protracted recession (ie if the Keynesians were wrong), in which case the US government will print incredible sums; 3) if the US initiates a war against the major European powers or China, that could open a fault-line in the global economy (this is another hyper unlikely scenario)